Problem $6-1($Algo$)$ Upfront fees; performance obligations $[$LO$6-4,6-5]$ Fit $\backslash$& Slim $($F$\backslash$&S$)$ is a health club that offers members various gym services. Required: $1.$ Assume F$\backslash$&S offers a deal whereby enrolling in a new membership for$$1,300$provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for$30\%$off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for$$1,320,$ and a one$-$year enrollment in yoga classes sells for an additional $\backslash$$$550.$ F$\backslash$&S estimates that approximately$50\%$of the vouchers will be redeemed. F$\backslash$&S offers a$10\%$discount on all one$-$year enrollments in classes as part of its normal promotion strategy. a$.\backslash$& b$.$ Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price. c$.$ Prepare the journal entry to recognize revenue for the sale of a new membership. $2.$ Assume F$\backslash$&S offers a "Fit $80"$ coupon book with $80$ prepaid visits over the next year. F$\backslash$&S has learned that Fit $80$ purchasers make an average of $70$ visits before the coupon book expires. A customer purchases a Fit $80$ book by paying$$550$in advance, and for any additional visits over $80$ during the year after the book is purchased, the customer can pay a$$25$visitation fee per visit. F$\backslash$&S typically charges$$25$to nonmembers who use the facilities for a single day. a$.$&b$.$ Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price. c$.$ Prepare the journal entry to recognize revenue for the sale of a new Fit $80$ book.

Hide Transcribed Text

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$\}$ Req$1$Aand$1$B& Req$1$CReq$2$Aand$2$B& Req$2$C$\backslash \backslash \backslash$hline $\backslash$end$\{$tabular$\}$ Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

Hide Transcribed Text

Prepare the journal entry to recognize revenue for the sale of a new membership. Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Hide Transcribed Text

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}\backslash$hline Req$1$Aand$1$BReq$1$CReq$2$Aand$2$B$\backslash \backslash \backslash$hline $\backslash$end$\{$tabular$\}$ Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

Hide Transcribed Text

Prepare the journal entry to recognize revenue for the sale of a new Fit $80$ book. Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Journal entry worksheet $1$ Record the revenue for the sale of a new Fit $80$ book. Note: Enter debits before credits.

Can you give the correct answer and calculation process?