A hospital corporation contracted with a private company to collect fees and maintain health facilities that adjoin their property.Users of the health facility can pay cash of $10 for a daily visit or they can purchase a pass.The pass has a magnetic strip that is swiped through the entrance device each time an individual enters the facility.This subtracts daily fee from the pass balance for each day used.The passes are issued for a fee of $365, which are good for 365 days.Refunds are not issued on the pass.Last year $18,650 was collected for daily visits, $438,000 of annual passes were issued, and $206,225 of pass usage was registered on the scanning equipment.How much should the company recognize as revenue for the year? Explain how the revenue recognition rule should be applied in this case.

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The Answer of A hospital corporation contracted with a private company to collect fees and maintain health facilities that adjoin their property.Users of the health facility can pay cash of $10 for a daily visit or they can purchase a pass.The pass has a magnetic strip that is swiped through the entrance device each time an individual enters the facility.This subtracts daily fee from the pass balance for each day used.The passes are issued for a fee of $365, which are good for 365 days.Refunds are not issued on the pass.Last year $18,650 was collected for daily visits, $438,000 of annual passes were issued, and $206,225 of pass usage was registered on the scanning equipment.How much should the company recognize as revenue for the year? Explain how the revenue recognition rule should be applied in this case.

A Hospital Corporation Contracted with a Private Company to Collect