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Sweat-astic Inc. (SI) operates an upscale fitness club offering two membership options:
One-year membership: The member makes one payment of $1,000 at the beginning of the year.
Long-term membership: The member pays a non-refundable initiation fee of $3,000 and subsequently makes monthly payments of $30 for as long as they continue to be a member. The membership can be cancelled at any time by the member, but the initiation fee is not refunded. The long-term membership has been quite successful to date, with 300 sold in 2019 and 400 more sold in 2020.
Revenue for all memberships is recognized when received. There are no separate fees for fitness classes offered at SI. SI reports under ASPE.
Required:
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