Part 2 Fresh Dinner Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meal kits to the customer's home. Single meal kits can be purchased at grocery stores. Approximately 12% of the kits shipped to grocery stores each month are returned unsold and are then discarded. Fresh Dinner Inc. charges the grocery stores $15 for each meal kit. In December 2020, Fresh Dinner Inc. began selling three month subscriptions for $900. Subscriptions are paid in advance and are non-cancellable. Fresh Dinner Inc. sold 1,000 subscriptions on December 1, 2020 which entitle the subscriber to 16 meal kits each month beginning in December 2020. During December, 5,500 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have 30-day terms of payment with Fresh Dinner Inc. Required: Determine how much revenue Fresh Dinner would be able to recognize in 2020. Use the five-step model for revenue recognition in preparing your response Question Analysis: Step 1: Is there a Contract? Step 2: What performance obligations are included in the contract? Step 3: What is the transaction price? Step 4: How should the transaction price be allocated to the performance obligation Step 5: Has a performance obligation been satisfied