Question:
Revenue and the Recognition Principle Heartstrings Gift Shoppe sells an assortment of gifts for any occasion. During October, Heartstrings started a Gift-of-the-Month program. Under the terms of this program, beginning in the month of the sale, Heartstrings would select and deliver a random gift each month, over the next 12 months, to the person the customer selects as a recipient. During October, Heartstrings sold 25 of these packages for a total of $11,280 in cash. For the month of October, calculate the amount of revenue that Heartstrings will recognize.