Jet Blue Revenue Recognition Case
Explain in your own words the steps Jet Blue Should apply in recognizing revenue? Provide citation from the codification 606.
What are Jet Blue’s sources of revenue?
Explain in your own words what we mean by a performance obligation. Provide citation from the codification.
What are Jet Blue’s performance obligation in the case?
Are these performance obligations “distinct?” Explain in your won words and provide citation from the codification
Explain in your own words what difference it makes if performance obligations are distinct?
How should Jet Blue allocate total revenue to the various performance obligations mentioned in the case? Explain in your own words and provide citation from the codification
How should Jet Blue account for “upfront ticket purchases and payments?” Explain in your own words and provide citation from the codification. Provide journal entries to record payment and revenue recognition.
For each performance obligation in the case, should Jet Blue account for the revenue over time or at a point in time? Explain in your own words and provide citation from the codification.
How should Jet Blue account for revenue from its frequent flyer program? Explain in your own words and provide citation from the codification. Provide journal entries.
Explain in your own words how Jet blue should account for total fees and fees received from chaining flight reservations? Provide citation from the codification.