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The Rink offers annual $250 memberships that entitle members to unlimited use of ice skating...

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Accounting

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The Rink offers annual $250 memberships that entitle members to unlimited use of ice skating facilities and locker rooms. Each new membership also entities the member to receive ten "30% off a $5 meal" coupons that are redeemable at the Rink's snack bar. The Rink estimates that approximately 75% of the coupons will be redeemed, and that, if the coupons weren't redeemed $5 meals still would be discounted by 6% because of ongoing promotions. Required: Prepare the journal entry to recognize the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Record the entry to recognize the sale of a new membership Notes Enter debits before credits Transaction Credit General Journal Cash Deferred revenue membership fees Deferred revenue meal coupon Debit 250.00 1 250.00 Record entry Clear entry View general Journal

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