Palmer’s Pool offers annual $200 memberships that entitle members to unlimited use of swimming pool facilities and locker rooms. Each new membership also entitles the member to receive ten “20% off a $5 meal” coupons that are redeemable at the Palmer’s snack bar. Palmer’s estimates that approximately 80% of the coupons will be redeemed.
Prepare the journal entry to record the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation.

Answer rating: 100% (QA)

To record the sale of a new membership at Palmers Pool we need to recognize the revenue associated w... View the full answer