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Krista's company should recognize the $750,000 revenue from her sale when the goods are shipped in January, not in December when the sale was made. Accordingly, her bonus for that sale should also be recognized in the following year. For Delta Airlines, the most appropriate time to recognize revenue from ticket sales is when the tickets are sold, assuming the tickets are non-refundable. If the tickets can be refunded or applied to a later flight, Delta should recognize the revenue when the passenger boards the flight.
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