QUESTION 4: REVENUE (9 Marks) TOPCHEF Ltd provides cooking classes and sells related products. The cooking classes provided range from beginners' classes (that are around hour long) to expert master chef classes (that can be up to 3 hours long). Customers need to book into classes online (at least 24 hours prior to the starting time of the class). On 1 August 2023, Tanner signed a 6-month contract with TOPCHEF Ltd and paid $280.00 in cash. This payment allowed Tanner to book into 8 hours of cooking classes for the month ending 31 August 2023. The payment included a one-off fee for a card of $120. Tanner received a card, which had a password that allowed him to access the TOPCHEF booking site and book into specific cooking classes. Under the contract, Tanner will be required to make a further 5 payments of $160 per month (payable at the beginning of each month starting on 1 September 2023). The accountant for TOPCHEF Ltd has recognised the $120 paid for the booking card as revenue on the 1 August 2023. REQUIRED Explain in your own words how and when revenue is to be recognised in this case (and why). 1) Explain whether the accountant is correct (whether the $120 paid for the booking card can be recognised as revenue on 1 August 2023). If the accountant is incorrect, explain when the $120 paid for the card should be recognised as revenue and why. (You need to give reasons and explain in your own words) 2) [6 marks] Prepare the journal entry/s required by TOPCHEF Ltd to account for the above on 1 August 2023. (Hint: Please ensure that all account titles used clearly indicate nature of account. I.e., whether asset, liability, revenue or expense.) [3 marks]