Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. assume f\&s offers a deal whereby enrolling

1. Assume F\&S offers a deal whereby enrolling in a new membership for $700 provides...

80.2K

Verified Solution

Question

Accounting

image
1. Assume F\&S offers a deal whereby enrolling in a new membership for $700 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 25% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $720, and a oneyear enrollment in yoga classes sells for an additional $500. F\&S estimates that approximately 40% of the vouchers will be redeemed. F\&S offers a 10% discount on all one-year enroliments in classes as part of its normal promotion strategy. a. How many performance obligations are included in the new member deal? b. How much of the contract price would be allocated to cach performance obligation? Explain your answer. c. Prepare the journal entry to recognize revenue for the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The results indicated that more money was donated in the identified-victim-only condition than in the statistics-only condition...

Statistics
Q

How might temperature related changes in protein structure explain changes in nerve conduction velocity under different temperature...

Medical Sciences
Q

How does turbulent intensity change according to 4 stroke engine’s cycle? What are some bulk motion...

Mechanical Engineering
Q

ces At the beginning of the year Mirmax set its predetermined overhead rate for movies...

Basic Math
Q

2. Find the factored form. Show your work. 4b + 1

Algebra
Q

Simplify the expression by combining like terms if possible 3z 5z 6z 3z 5z 6z

Algebra
Q

How many whole numbers between 100 and 400 contain the digit 2

Algebra
Q

Exercise 5.1 (Algo) Calculating adjustments. LO 5-2 1. On June 1, 20X1, Conner Company, a...

Accounting
Q

Question 15 A company developed the following per-unit standards for its product: 5 kilograms of...

Accounting
Q

sarasota company has gathered the following information units in beginning work in process inventory ...

Accounting
Q

Calculate Lead Time Flint Fabricators Inc. machines metal parts for the automotive industry. Under the...

Accounting
Q

Below is what you need for the question (Stream immunization e) A company...

Finance