Contingent liabilities

Write one paragraph discussing the accounting concepts behind reporting unearned income. State which accounts should be debited and credited, for how much, and explain why.

Prompt: The purpose of this assignment is for students to think critically about the concept of multiple performance obligations. Caleb’s Body Shop is a gym that sells annual memberships for $1,200. Each membership sold includes 12 coupons for $1 off at the gym’s juice bar — the coupons are similar to gift cards. (When a […]

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