Revenue Recognition Problem…?

Company Z recognizes revenues upon the determination of the availability of merchandise, the establishment of a delivery date, and the approval of customer credit (when applicable).
a.) Critique the revenue recognition of this method for Company Z.
b.) Recently, the company changed its revenue recognition to record merchandise sales upon delivery. Describe the effects this change of accounting methods would have on the company’s balance sheet, income statement, and statement of cash flows.

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