(Accounting - Auditing Case) For each of the following situation indicate how and/or when the client should recognize the revenue. Justify your decision :

Dave's Discount Stores is a discount retailer who generates revenue from the saleof membership fees it charges customers to shop at its stores. The membershiparrangement requires the customer to pay the entire membership fee (usually $48)at the beginning of the arrangement. However, the customer can unilaterallycancel the membership arrangement and receive a refund of the unused portion.Based on past experiences, Dave's estimates that 35 percent of the customers willcancel their memberships before the end of the contract