Question 1 (20 Marks) You are an associate at the audit firm Olive & Partners, one of your biggest clients is Meals by Jo'. The company is new entrant into the catering market that has gained much popularity due to its innovative strategy. As part of its strategy, Meals by Jo' offers customers a wide variety of services including daily delivery of meals at no cost around the city. The customers may choose from a wide variety of meal options or customized meals as per customer dietary specifications. By doing this, the company offers customers an incentive to enjoy daily customized meals in the comfort of their homes or offices. For this service, customers are required to enter into a three-year membership contract with the company. The terms of the contract require that customers pay a membership fee of $1200 per year payable quarterly in advance. In return customers obtain access to the company's network of restaurant around the country, the right to the membership and to enjoy the benefits as per the contract e.g daily customized meals, free delivery etc. During the audit, you discovered that the company's accounting policy is to recognize membership fees as income on receipt of the fee from a member. It's draft financial statements for the year ended 30 June 2022 classify the full amount of N$500000 membership fees received in cash from customers during the year as income. An analysis of the membership fees received during the year shows the following: Required: Discuss how Meals by Jo' should account for the cash received from customers in its Financial statements for the year ended 30 June 2022. Justify your answer with reference to the relevant definitions and recognition criteria in the Conceptual fromework