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The Rink offers annual $350 memberships that entitle members to unlimited use of ice-skating facilities...

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Accounting

The Rink offers annual $350 memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten 25% off a $5 meal coupons that are redeemable at the Rinks snack bar. The Rink estimates that approximately 80% of the coupons will be redeemed, and that, if the coupons werent redeemed, $5 meals still would be discounted by 5% 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.)

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