130 CHAPTER 3 ADJUSTING THE ACCOUNTS Exercises dgement to determine when the com- dentry wnen revenue is E3-1 For the following independent situations, use professionals recognized. pany should recognize revenue from the transactions: (SO 1) AP (a) WestJet Airlines sells you a nonrefundable airline ticket in September for a light at Christmas. (D) Leon's Furniture sells you a home theatre in January on a no money down, no interest, and no payments for one year" promotional deal. (c) The Toronto Blue Jays sell season tickets to games at the Rogers Centre on-line. Fans can purchase the tickets at any time, although the season does not officially begin until April. It runs from April through October (d) The RBC Financial Group lends you money at the beginning of August. The loan and the interest are repayable in full at the end of November (e) In August, you order a sweater from Sears using its on-line catalogue. Sears ships the sweater to you in September and you charge it to your Sears credit card. In October, you receive your Sears bull and pay it. (1) You pay for a one-year subscription to Canadian Business magazine in May. (8) You purchase a gift card in December from iTunes to give to your friend for her birthday. Your friend uses the gift card in January. Instructions Identify when revenue should be recognized in each of the above situations