A company (ABC) offers one-year memberships the members may use any of the twenty facilities but must reserve tennis court time and pay a separate fee before using the court. As an incentive to new customers, ABC advertised that any customers not satisfied for any reason could receive a refund of the remaining portion of unused membership fees. Membership fees are due at the beginning of the individual membership period. However, customers are given the option of financing the membership fee over the membership period at a 9% interest rate.

Some customers have expressed a desire to take only the regularly scheduled Yoga classes without paying for a full membership. During the current fiscal year, ABC began selling coupon books for Yoga classes to accommodate these customers. Each book is dated and contains 50 coupons that may be redeemed for any regularly scheduled Yoga class over a one-year period. After the one-year period, unused coupons are no longer valid.

Required:

Explain when ABC should recognize revenue from membership fees, court rentals, and coupon book sales. Please prepare journal entries.