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Background: The accountant then asked Carla to explain the restaurant discount program. Carla explained that HT wanted its customers to have a great experience so

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Background: The accountant then asked Carla to explain the restaurant discount program. Carla explained that HT wanted its customers to have a great experience so it would lead to repeat business and referrals. Customers typically stay in the local area surrounding the parks and are interested in the best options for their meals. By working jointly with local restaurants, HT is able to offer $100 gift certicates at a cost of $80 to HT's customers. HT does not purchase or commit itself to purchase any gift certificates in advance of its sale to a customer. HT customers are able to purchase these nonrefundable gift certificates directly from HT's website using their credit cards. Once the credit card charge of $80 clears, HT then purchases a $100 gift certificate from the customer's designated restaurant. HT remits $75 to the participating restaurant and retains $5. The restaurant is responsible for fulfilling obligations associated with the gift certificate, including remedies for customer complaints. HT has no further obligation to its customer. Carla also explained she was able to purchase 20 weeklong memberships to the Adventurers' Club, a very exclusive restaurant. A membership allows the holder unlimited dining during any one-week period in the current year at the Adventurers' Club. HT purchased these memberships at a cost of $300 each, and while it has discretion over the selling price, it is currently offering them to its customers for $500. The primary targets of these memberships are corporations. A membership card good for one week during the customer's stay is issued upon receipt of the $500. Any memberships not sold during the current year will expire and have no future value. Requirements: Read ASC 606-10-55-36 through 40 in ASC 606, Revenue from Contracts with Customers, discussing implementation guidance for the principal versus agent determination. Review the examples in ABC 606-1 0-55-316 through 334F. Determine if HT is a principal or an agent for the gift certificates and the Adventurers' Club membership and, accordingly, how these revenues should be recorded. Provide a thorough explanation of your conclusions

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