Class, Zoo-doo Compost, Inc. processes fertilizer made with organic materials provided by the animals at Big City Zoo. Zodo is sold in specially designed plastic pails that may be kept and used for household chores or returned to the seller. The fertilizer is sold for $12.50 per two-gallon pail (including $1.76 cost of the pail). For each pail returned, Zodo donates $1 to Big City Zoo and the pail is used again.

What is your opinion on how to account for the donations to be made when fertilizer pails are returned? Ignore tax implications.