Assume F&S offers a "Fit 50" coupon book with 50 prepaid visits over the next year. F&S has learned that Fit 50 purchasers make an average of 40 visits before the coupon book expires. A customer purchases a Fit 50 book by paying $500 in advance, and for any additional visits over 50 during the year after the book is purchased, the customer can pay a $15 visitation fee per visit. F&S typically charges $15 to nonmembers who use the facilities for a single day.

 a. How many separate performance obligations are included in the Fit50 member deal? Explain your answer. 

b. How much of the contract price would be allocated to each separate performance obligation? Explain your answer. 

c. Prepare the journal entry to recognize revenue for the sale of a new Fit 50 book.

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a Number of peiformance obligations is one Access to the gym for 50 vi... View the full answer