Bexinco Ltd offers discounted bundled health insurance packages. Bexinco Ltds bundled service package includes joining fee which

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Question:

Bexinco Ltd offers discounted bundled health insurance packages. Bexinco Ltd’s bundled service package includes ‘joining fee’ which is offered at the inception of the contract and two ongoing services – ‘ Dental services’ and ‘Chiropractic services’ over a one- year period.

Customer L pays $72,000 upfront, on 1 July 2020. Bexinco Ltd determines that, if it were to charge a separate fee for each service if sold separately, the fee would be as follows.

Joining fee	$8,000
Dental services	$24,000
Chiropractic services	$48,000

The end of Bexinco Ltd’s reporting period is 30 June.

Required
a) Prepare the journal entry to record this transaction in accordance with AASB 15/IFRS 15 at 1 July 2020 (at inception of the agreement). (2 marks)
b) Prepare journal entries for the year ended 30 June 2021.
(2 marks)