(Solution) -AC 551 Unit 4 Assignment FASB Codification (Case 13-1, Refer a Friend Program) Updated

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AC 551 Unit 4 Assignment FASB Codification (Case 13-1, Refer a Friend Program) NEW

1. How should the $25 Referral Credit be recorded in Runway’s Income Statement— as a reduction of revenue or as a marketing expense?
2. When would Runway record the $25 Referral Credit?
What are the entries Runway would record when the $25 Referral Credit is earned by the Existing Customer?  
What are the entries Runway would record when the $25 Referral Credit is redeemed against a $100 purchase made by the Existing Customer?
3. Runway is planning to adopt IFRSs in the near future. What is the relevant?