Oregon Fitness Centers have 15,000 members whose monthly dues are $225 each. The company does not send individual bills to customers, who have until the 10th day of the month following the month of service to pay their monthly dues. On December 31, 2019, the company's records show that 7,000 customers have already paid their December dues, and the payments were properly recorded.
The adjusting entry to be recorded on December 31 will include:

Question

Quizplus · Accepted Answer

Total Membership Revenue = 15,000 X $225= $3,375,000
December Membership Revenue received in 2019 = $225 x 7,000 = $1,575,000 (already recorded)
December Membership Revenue to be received in 2020 = $225 x (15,000 - 7,000) = $1,800,000
December 31, 2019 entry:
Accounts Receivable $1,800,000
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Membership Revenue $1,800,000

Oregon Fitness Centers Have 15,000 Members Whose Monthly Dues Are