Analyzing Unearned Revenue Disclosures

The following disclosures $($excerpted$)$ are from the annual report of Costco Wholesale Corporation.

recovery, which are included in other current liabilities and other current assets, respectively, in the consolidated balance sheets.

The Company is the principal for the majority of its transactions and recognizes revenue on a gross basis.

The Company accounts for membership fee revenue, net of refunds, on a deferred basis, ratably over the one$-$year membership period.

computed based on redemption data. For the past three fiscal years, the net reduction in sales was $$2,307,$$$2,047,$ and $$1,707$ respectively. Costco receives cash for year$-$long memberships throughout the year. When it receives cash, the company records it a$!$

during the current fiscal year for membership fees.

Note: Use negative signs with answers when appropriate.

Note: If an answer field is not needed, leave it blank $($not all answer fields will be used$).$

d$.$ Explain in plain language the "accrued member rewards" liability.

To build customer loyalty Costco offers $2\%$ reward to Executive members in certain countries. Every time an Executive member spends $$1,000,$ Costco records a liability of $

that it promises to give the customer later.

e$.$ Complete the following sentence. Costco recorded sales of at least $q$

from the Company's Executive members, during the current fiscal year.