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?

A---No answer text provided.

B---Some of the revenue must be deferred to represent a future performance obligation.

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

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

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