Needed ASAP! Short Answer Question – APA format – (1pg. minimum) – $5.00

The following is an excerpt from a conversation between Sonia Lopez and Pete Lemke just
before they boarded a flight to Paris on Delta Air Lines. They are going to Paris to
attend their companys annual sales conference.
Sonia: Pete arent you taking an introductory accounting course at college?
Pete : Yes I decided its about time I learned something about accounting. You know our annual bonuses are based on the sales figures that come from the accounting department.
Sonia: I guess I never really thought about it.
Pete : You should think about it! Last year I placed a $5000000 order on December 30. But when I got my bonus the $5000000 sale wasnt included. They said it hadnt been shipped until January 9 so it would have to count in next years bonus.
Sonia: A real bummer!
Pete : Right! I was counting on that bonus including the $5000000 sale.
Sonia: Did you complain?
Pete : Yes but it didnt do any good. Julie the head accountant said something about matching revenues and expenses. Also something about not recording revenues until the sale is final. I figure Id take the accounting course and find out whether shes just messing with me.
Sonia: I never really thought about it. When do you think Delta Air Lines will record its revenues from this flight?
Pete : Hmmm . . . I guess it could record the revenue when it sells the ticket . . . or . . . when the boarding passes are scanned at the door . . . or . . . when we get off the plane . . . or when our company pays for the tickets . . . or . . . I dont know. Ill ask my accounting instructor.
Discuss when Delta Air Lines should recognize the revenue from ticket sales to properly match revenues and expenses.