Business, 13.10.2020 03:01 DKLDDD1720

Fit & Slim (F&S) is a health club that offers members various gym services. Assume F&S offers a deal whereby enrolling in a new membership for $1,100 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 30% 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 $1,140, and a one-year enrollment in yoga classes sells for an additional $600. F&S estimates that approximately 50% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy.

Required:
a. Indicate whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.
b. Prepare the journal entry to recognize revenue for the sale of a new membership.

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Fit & Slim (F&S) is a health club that offers members various gym services. Assume F&S...

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