Great Value Co-Op recognizes membership fee revenues over the term of the membership, which is 12 months. If their Unearned Membership Fee Revenue account had a balance of $1,200 million on January 31, 2019, and $1,100 million on January 31, 2020 and the company received membership fees in cash of $2,200 million during the year, what amount was recognized as Membership Fee Revenue for the fiscal year?

Question

Quizplus · Accepted Answer

$1,200 + $2,200 - X = $1,100
X = $1,200 + $2,200 - $1,100
X = $2,300

Great Value Co-Op Recognizes Membership Fee Revenues Over the Term