The Purple & Gold Gym, Inc., uses the accrual method of accounting.The corporation sells memberships that entitle the member to use the facilities at any time.A one-year membership costs $360 ($360/12 = $30 per month); a two-year membership costs $600 ($600/24 = $25 per month).Cash payment is required at the beginning of the membership period. On July 1, 2012, the company sold a one-year membership and a two-year membership.The company should report as gross income from the two contracts:

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The Answer of The Purple & Gold Gym, Inc., uses the accrual method of accounting.The corporation sells memberships that entitle the member to use the facilities at any time.A one-year membership costs $360 ($360/12 = $30 per month); a two-year membership costs $600 ($600/24 = $25 per month).Cash payment is required at the beginning of the membership period. On July 1, 2012, the company sold a one-year membership and a two-year membership.The company should report as gross income from the two contracts: