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Nautilus Fitness is one of Lebanon's leading Health Clubs located in Beirut. The club provides...

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Accounting

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Nautilus Fitness is one of Lebanon's leading Health Clubs located in Beirut. The club provides exceptional levels of customer service to ensure that its members enjoy a memorable experience, It offers yearly memberships to its members, and the fees are due in full at the beginning of the membership period. As an incentive to new customers, Nautilus advertised that any customers not satisfied for any reason could receive a refund of the remaining portion of unused membership fees. As a result of this policy, Joseph Karam, company controller, recognized revenue ratably over the life of the membership. Nautilus is in the process of preparing its year- end financial statements. Mireille, Nautilus' treasurer, is concerned about the company's performance this year. She reviews the financial statements Joseph prepared and tells him to recognize membership revenue when the fees are received. 1 Answer the following questions: a. Describe the revenue recognition principle as it relates to this case, b. What are the ethical issues related to this case? c. What should Joseph do

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