The Royal Elbonian Yacht Club (REYC) is an association of members that offers a number of services: community and friendship among members, sailing courses for its members, meals in its restaurant, moorage for boats at the home port of Elbow City, and moorage at “outstation” facilities at ports outside of Elbow City. Access to the club facilities, including the club restaurant, is available to members only. To fund these services, the club charges a number of fees:

• A one-time initiation fee of $50,000; this fee is non-refundable and is valid for as long as the member continues to be a member in good standing.
• An annual membership fee of $10,000 due on January 1 each year, which is valid for the calendar year.
• Moorage on the home port is at market rates based on the size of the boat.
• Moorage at outstation facilities is included in the membership fee.
• Fees for skill improvement courses vary with each course.
• Fees for meals consumed in the club restaurant vary according to menu prices.

Along with the annual membership fee, members receive a $2,400 credit toward restaurant meals. Unused credits at the end of the year have no value. Because the club is operated on a break-even basis, the prices for restaurant meals are on average 25% below prices charged at comparable commercial restaurants. REYC is a highly sought-after sailing club, so few members quit once accepted into membership, resulting in members remaining in the club for an average of 25 years.

Required:
Discuss how REYC should recognize revenue from its various sources.