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Please show a complete step-by-step solution thank you! (a) Which of the following...

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Accounting

Please show a complete step-by-step solution thank you!

image (a) Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees? OWhen it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year. Because Costco does not know how many of its members will continue to the end of the year, cash received from members is recorded as a liability and recognized as revenue only at year-end. OThe company records revenue when the cash is received. Because Costco has a refund policy, the company records revenue when the cash is received, less an allowance for expected membership terminations

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