WWR provides white water rafting tours of the Rapid River. Clients pre-book tours on-line and pay the following fees at the time of booking: 1. a $20 administration fee for processing the booking and potential cancellations, 2. A $40 fee for guaranteeing the reservation and 3. $600 for the white water rafting tour itself. Bookings can be placed as far as one year in advance. If the client cancels the booking more than 2 weeks in advance of the booked tour date, all fees except the administration fee is refundable. If the client cancels the booking within two weeks before the tour date, but before one week of the booked tour date, only the white water rafting tour fee is refunded. If client cancels within one week or fails to show up for the scheduled tour, no fees are refunded. WWR has been in business for several years and can estimate the number of clients that will cancel or not show up for a booked tour. Cost of providing the white water rafting tour can also be estimated Required: Discuss the performance obligations WWR has in relation to revenue recognition in the above scenario. When should WWR recognize each of the fees ($20, $40, and $600) as revenue? (6 marks) WWR provides white water rafting tours of the Rapid River. Clients pre-book tours on-line and pay the following fees at the time of booking: 1. a $20 administration fee for processing the booking and potential cancellations, 2. A $40 fee for guaranteeing the reservation and 3. $600 for the white water rafting tour itself. Bookings can be placed as far as one year in advance. If the client cancels the booking more than 2 weeks in advance of the booked tour date, all fees except the administration fee is refundable. If the client cancels the booking within two weeks before the tour date, but before one week of the booked tour date, only the white water rafting tour fee is refunded. If client cancels within one week or fails to show up for the scheduled tour, no fees are refunded. WWR has been in business for several years and can estimate the number of clients that will cancel or not show up for a booked tour. Cost of providing the white water rafting tour can also be estimated Required: Discuss the performance obligations WWR has in relation to revenue recognition in the above scenario. When should WWR recognize each of the fees ($20, $40, and $600) as revenue? (6 marks)