List journal entry to recognize revenue for sale of new fit

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Assume F&S offers a "Fit 40" coupon book with 40 prepaid visits over the next year. F&S has learned that Fit 40 purchasers make an average of 30 visits before the coupon book expires. A customer purchases a Fit 40 book by paying $500 in advance, and for any additional visits over 40 during the year after the book is purchased, the customer can pay a $10 visitation fee per visit. F&S typically charges $10 to nonmembers who use the facilities for a single day.

Problem 1: Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

Problem 2: List the journal entry to recognize revenue for the sale of a new Fit 40 book.

Reference no: EM132787191

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