Sam's Club (part of the WalMart consolidated operations) collects annual non-refundable membership fees from customers. When...

 

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Sam's Club (part of the WalMart consolidated operations) collects annual non-refundable membership fees from customers. When should Sam's Club recognize revenue for these membership fees assuming that they are all cancelled by all customers on the same day during the first fiscal year of the Company? A) Immediately since the fees were nonrefundable B) Evenly over the membership year c) Evenly over the current fiscal year D) At the end of the membership year when Sam's has discharged its obligation to the customer E) Pro rata over the customer's actual purchasing pattern Sam's Club (part of the WalMart consolidated operations) collects annual non-refundable membership fees from customers. When should Sam's Club recognize revenue for these membership fees assuming that they are all cancelled by all customers on the same day during the first fiscal year of the Company? A) Immediately since the fees were nonrefundable B) Evenly over the membership year c) Evenly over the current fiscal year D) At the end of the membership year when Sam's has discharged its obligation to the customer E) Pro rata over the customer's actual purchasing pattern

Answer rating: 100% (QA)

Option b is correct Sams club should recognize revenue for these membership fees evenly over t... View the full answer