Fassino Wholesale Corporation ("Fassino's") Operates Discount Retail Stores

Fassino Wholesale Corporation ("Fassino's") operates discount retail stores.To shop in a Fassino's store, customers must pay a nonrefundable, annual membership fee in advance, using either cash or an American Express card.A customer purchases an annual membership from Fassino's for $120, a 20-pack of paper towels for $10.99, and four new tires for $480.The tire purchase includes mounting and aligning by a Fassino's tire technician at the time of initial installation and alignment and tire rotation services for three years afterward.The customer pays with an American Express card.
Using the Fassino's Wholesale Corporation example, when should Fassino's recognize the $120 membership fee as revenue?

A) Fassino's should recognize all of the membership fee ($120.00) at the time that the annual membership fee is sold to the customer because it is nonrefundable.
B) Fassino's should recognize all of the membership fee ($120.00) one year from the time that the annual membership fee is sold to the customer because the membership fee has been fully earned.
C) Fassino's should recognize 1/12th of the membership fee, or $10.00, each month during the annual membership period.
D) Fassino's should recognize two-thirds of the membership fee, or $90.00, at the time that the annual membership fee is sold to the customer because it is nonrefundable, and the other one-third of the membership fee, or $30.00, at the end of the annual membership period.
E) Fassino's should recognize one-quarter of the membership fee, or $30.00, at the time that the annual membership fee is sold to the customer because it is nonrefundable, and the other three-quarters of the membership fee, or $90.00, at the end of the annual membership period.