You and your friends are taking a two-week trip to Paris, France, from June 1 to 15, 2023. On May 1, 2023, you booked and prepaid for your stay at Hotel de Paris for $300 per night for 14 nights. Based on the hotel policies, the booking is non-refundable.
1. What product or service is being sold? When does Hotel de Paris fulfill its performance of providing its product or service?
2. Can Hotel de Paris measure the amount of accounts receivable and revenue for the above transaction? Explain.
3. Is it probable that Hotel de Paris will collect payment from you and your friends for your hotel booking? Explain.
4. Based on your analysis, determine when Hotel de Paris should recognize the revenue.