Using the Fassino's Wholesale Corporation example, when should Fassino's recognize the $120 membership fee as revenue?
a. Fassino's should recognize all of the membership fee ($120.00) at the time that the annual membership fee is sold to the customer because it is nonrefundable.
b. Fassino's should recognize all of the membership fee ($120.00) one year from the time that the annual membership fee is sold to the customer because the membership fee has been fully earned.
c. Fassino's should recognize 1/12th of the membership fee, or $10.00, each month during the annual membership period.
d. Fassino's should recognize two-thirds of the membership fee, or $90.00, at the time that the annual membership fee is sold to the customer because it is nonrefundable, and the other one-third of the membership fee, or $30.00, at the end of the annual membership period.
e. Fassino's should recognize one-quarter of the membership fee, or $30.00, at the time that the annual membership fee is sold to the customer because it is nonrefundable, and the other three-quarters of the membership fee, or $90.00, at the end of the annual membership period.
C
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