RU FIT Centre opened for business on April 5, 2021. For revenue recognition purposes, all memberships are assumed to be issued at the beginning of the month, with 1-year memberships costing $600 and 2-year memberships costing $960. During April, 32 1-year memberships and 25 2-year memberships were sold. RU FIT Centre prepares monthly financial statements. Which of the following statements is correct?
A)Revenue to be recognized as earned for the month of April is $2,600.
B)Revenue to be recognized as earned for the month of April is $3,600.
C)Revenue to be recognized as earned for the month of April is $43,200.
D)Deferred revenue at April 30 would be $43,200.

Question

Quizplus · Accepted Answer

The Answer of RU FIT Centre opened for business on April 5, 2021. For revenue recognition purposes, all memberships are assumed to be issued at the beginning of the month, with 1-year memberships costing $600 and 2-year memberships costing $960. During April, 32 1-year memberships and 25 2-year memberships were sold. RU FIT Centre prepares monthly financial statements. Which of the following statements is correct?
A)Revenue to be recognized as earned for the month of April is $2,600.
B)Revenue to be recognized as earned for the month of April is $3,600.
C)Revenue to be recognized as earned for the month of April is $43,200.
D)Deferred revenue at April 30 would be $43,200.

RU FIT Centre Opened for Business on April 5, 2021