When should a contingent liability be recorded, Managerial Accounting

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When should a contingent liability be recorded

Response to the following problem:

Delta Air Lines' SkyMiles program allows frequent flyers to earn credit toward free tickets and other amenities.

a. Does Delta Air Lines have a contingent liability for award redemption by its SkyMiles members?

b. When should a contingent liability be recorded?

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Managerial Accounting: When should a contingent liability be recorded

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Managerial Accounting: When should a contingent liability be recorded

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