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1. For each situation. indicate the c

1. For each situation. indicate the c

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. For each situation, indicate the date on which the company in question should recognize revenue under accrual-basis accounting: 1. On July 12th, Ramona Rice Company delivers a shipment of basmati rice to a customer, who pays in cash on July 15th. 2. Disney offers a discounted rate for Disney+ subscriptions to customers who pay for three years of service up front. Nana Duck pays for 3 years of Disney+ on June 6th 2022. Her subscription will expire on June 5th 2025. 3. Escape'r'Die is a high-stakes escape room located in Beverly Hills. A customer books the deluxe room experience "Sleeping with the Fishes" on November 1st. The customer comes to the escape room on November 17th and pays with a credit card before leaving, but the customer doesn't pay the bill to their credit card company until November 19th. On November 23rd, Escape'r'Die pays 50% of the funeral costs for one of the November 17th attendees.
Transcribed Image Text:1. For each situation, indicate the date on which the company in question should recognize revenue under accrual-basis accounting: 1. On July 12th, Ramona Rice Company delivers a shipment of basmati rice to a customer, who pays in cash on July 15th. 2. Disney offers a discounted rate for Disney+ subscriptions to customers who pay for three years of service up front. Nana Duck pays for 3 years of Disney+ on June 6th 2022. Her subscription will expire on June 5th 2025. 3. Escape'r'Die is a high-stakes escape room located in Beverly Hills. A customer books the deluxe room experience "Sleeping with the Fishes" on November 1st. The customer comes to the escape room on November 17th and pays with a credit card before leaving, but the customer doesn't pay the bill to their credit card company until November 19th. On November 23rd, Escape'r'Die pays 50% of the funeral costs for one of the November 17th attendees.
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