Sally's Choice sells season memberships for $200 each.During January of 2016, 60 season memberships were sold.As of March 31, 2016, only $3,000 of season membership fees had been collected from customers.The season runs for 4 months starting May 15, 2016.Which one of the following is an amount reported on the financial statements for the period ending March 31, 2016?

Question

Quizplus · Accepted Answer

As of March 31, 2016, only $3,000 of season membership fees had been collected from customers, so the remaining $9,000 ($200 x 60 memberships) is unearned membership revenue. Therefore, the amount reported on the financial statements for the period ending March 31, 2016, is unearned membership revenue of $3,000.

Sally's Choice Sells Season Memberships for $200 Each