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AfilCa [17]
2 years ago
11

Country Club Center sells season memberships for $100 each. Prior to May 1, 2017, 60 season memberships were sold. The season ru

ns for 4 months starting May 1, 2017. What is the amount of revenue that should be reported on the income statement for the month ended May 31, 2017
Business
1 answer:
Vlada [557]2 years ago
6 0

Answer:

$1,500

Explanation:

Since the season lasts 4 months, the membership fees must be recognized over the whole 4 month period, that means that the club must recognize $100 / 4 = $25 per month per membership sold.

The company sold 60 season memberships, so it must recognize 60 x $25 = $1,500 in revenues.

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