Carpet Mill has ▼
strong
weak
internal controls. There is
▼
a good separation of duties
a good system of documenting transactions
not a good separation of duties
not a good system of documenting transactions
.
▼
Different people receive cash, record the cash, and deposit the cash
The accountant should maintain detailed records of the accounts receivable that are collected
The cash collected is properly summarized and recorded by the accountant.
The same person receives cash, records the cash, and deposits the cash
.

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?