Question: Alaska Air has a mileage program where a customer earns a free flight with 50,000 miles. How should Alaska account for the miles earned when

Alaska Air has a mileage program where a customer earns a free flight with 50,000 miles. How should Alaska account for the miles earned when a customer books a flight that deposits 1,000 miles into her account?

Group of answer choices

A) Some of the revenue must be deferred to represent a future performance obligation.

B) No answer text provided.

C) All of the revenue can be recognized immediately and the cost of the free flight will be recorded when taken.

D) All of the revenue can be recognized immediately and a liability must be created for a future performance obligation.

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