Apple Corporation’s iTunes® provides digital products, such as music, video, and software, which can be downloaded to portable devices such as iPhone® and iPod®. Purchases made on iTunes are made with a credit card that is on file with the credit card processing company. Such transactions are considered cash transactions. Once the purchase is made, the consumer can download the requested digital product to their portable device for their enjoyment and the charge will show up on their credit card bill.
a. What kind of e-commerce application is described by Apple iTunes?
b. Assume you purchased 12 songs for $1 each on iTunes. Provide the journal entry generated by Apple’s e-commerce application.
c. If a special journal were used, what type of special journal would be used to record this sales transaction?
d. If an electronic form were used, what type of electronic form would be used to record this sales transaction?
e. How might you expect revenues to be recorded for a B2C e-commerce transaction?