ACG 3113 Intermediate Financial Accounting II Fall 2022 Writing Assignment Objective: Consistent with SLO#2, the objective of this assignment is for students to demonstrate the ability to write at a college level, to write with clarity and to use Standard English grammar and punctuation. In addition, students will be able to develop and support conclusions and recommendations in response to an accounting question in writing. Assignment: Be Fit Inc., offers annual gym memberships. Annual membership fees are due in full right away - at the beginning of the membership period. Be Fit offers customers a full refund for any unused period if for any reason a customer is not satisfied. As a result of this policy, Be Fit Inc. recognized revenue ratably over the period of the membership rather than when the dues were received from the customer. Be Fit Inc.'s CEO, Anthony Zafer, is not satisfied with the company's performance this year and has requested that you, the Controller of Be Fit Inc., recognize the revenue when received rather than over the membership period. Required: Write a memo dated October 30,2022 , to Anthony Zafer, the CEO of Be Fit Inc. addressing the issues identified below. This memo should be short and to the point (max 1-2 pages, single spaced), be typewritten, using word-processing software. Font should not be larger than 12. Pages should be numbered. You will also be graded on how you organize the information. There are many options with how to bundle the "answers" you give; choose the option that would make the memo easiest to read, interpret, and implement by the user. There is no one right way, so it is perfectly fine for students to take different approaches to presenting the information. 1. Discuss the factors to be considered in determining when revenue should be recognized per Accounting Standards Update No. 2014-09 (Read the relevant section in chapter 18 and conduct additional research, as necessary. Be sure to cite your sources appropriately.) 2. Apply the above guidance to Be Fit Inc.'s facts. 3. Explain to CEO Zafer what your decision is with respect to Be Fit Inc.'s accounting treatment concerning gym membership revenues. If you decide that the appropriate treatment is to recognize revenue over time, be sure to explicitly explain the criteria under GAAP that justifies your position. 4. Explain the ethical issues involved in your decision. ACG 3113 Intermediate Financial Accounting II Fall 2022 Writing Assignment Objective: Consistent with SLO#2, the objective of this assignment is for students to demonstrate the ability to write at a college level, to write with clarity and to use Standard English grammar and punctuation. In addition, students will be able to develop and support conclusions and recommendations in response to an accounting question in writing. Assignment: Be Fit Inc., offers annual gym memberships. Annual membership fees are due in full right away - at the beginning of the membership period. Be Fit offers customers a full refund for any unused period if for any reason a customer is not satisfied. As a result of this policy, Be Fit Inc. recognized revenue ratably over the period of the membership rather than when the dues were received from the customer. Be Fit Inc.'s CEO, Anthony Zafer, is not satisfied with the company's performance this year and has requested that you, the Controller of Be Fit Inc., recognize the revenue when received rather than over the membership period. Required: Write a memo dated October 30,2022 , to Anthony Zafer, the CEO of Be Fit Inc. addressing the issues identified below. This memo should be short and to the point (max 1-2 pages, single spaced), be typewritten, using word-processing software. Font should not be larger than 12. Pages should be numbered. You will also be graded on how you organize the information. There are many options with how to bundle the "answers" you give; choose the option that would make the memo easiest to read, interpret, and implement by the user. There is no one right way, so it is perfectly fine for students to take different approaches to presenting the information. 1. Discuss the factors to be considered in determining when revenue should be recognized per Accounting Standards Update No. 2014-09 (Read the relevant section in chapter 18 and conduct additional research, as necessary. Be sure to cite your sources appropriately.) 2. Apply the above guidance to Be Fit Inc.'s facts. 3. Explain to CEO Zafer what your decision is with respect to Be Fit Inc.'s accounting treatment concerning gym membership revenues. If you decide that the appropriate treatment is to recognize revenue over time, be sure to explicitly explain the criteria under GAAP that justifies your position. 4. Explain the ethical issues involved in your decision