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A Local Tennis Club Sells Season Memberships for $1,000 Each

Question 98

Multiple Choice

A local tennis club sells season memberships for $1,000 each.During January,50 season memberships were sold.As of March 31,only $25,000 of season membership fees had been collected from customers.The tennis season runs for six months starting April 1.Which of the following is an amount reported on the balance sheet dated March 31?


A) unearned tennis membership revenue of $25,000
B) unearned tennis membership revenue of $50,000
C) accounts receivable of $50,000
D) tennis membership revenue of $25,000

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