Alaska Air has a mileage program where a customer earns a free flight with 50,000 miles. How should Alaska account for t
Posted: Fri Jul 01, 2022 8:39 am
Alaska Air has a mileage program where a customer earns a freeflight with 50,000 miles. How should Alaska account for the milesearned when a customer books a flight that deposits 1,000 milesinto her account?
Group of answer choices
A) Some of the revenue must be deferred to represent a futureperformance obligation.
B) No answer text provided.
C) All of the revenue can be recognized immediately and the costof the free flight will be recorded when taken.
D) All of the revenue can be recognized immediately and aliability must be created for a future performance obligation.
Group of answer choices
A) Some of the revenue must be deferred to represent a futureperformance obligation.
B) No answer text provided.
C) All of the revenue can be recognized immediately and the costof the free flight will be recorded when taken.
D) All of the revenue can be recognized immediately and aliability must be created for a future performance obligation.