Bill's Club is a discount retailer subject to SEC regulation. Bill's Club charges its customers an annual membership fee. Although the fee is collected in advance, a customer can cancel and receive a full refund at any time during the year of membership.
Should Bill's Club recognize the entire initial membership fee at the beginning of the year or on a straight-line basis over the course of the membership year? Explain.
What journal entry should be made to record the initial receipt of the membership fees?

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The Answer of Bill's Club is a discount retailer subject to SEC regulation. Bill's Club charges its customers an annual membership fee. Although the fee is collected in advance, a customer can cancel and receive a full refund at any time during the year of membership.
Should Bill's Club recognize the entire initial membership fee at the beginning of the year or on a straight-line basis over the course of the membership year? Explain.
What journal entry should be made to record the initial receipt of the membership fees?

Bill's Club Is a Discount Retailer Subject to SEC Regulation