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Question - A company books vacation homes totalling $5,770,000 in 2020. They are fully paid for at the time of reservation & are 50% refundable if it is canceled up to 21 days before. After that you can't cancel.
The company charges an 11% fee on the total reservation amount & transfers that to property owners account 5 days prior to reservation.
Of the 2020 reservations, 90% had been completed before the companys year end dec 31. The balance was still within the cancellation period.
How much revenue would the company recognize in 2020?
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