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Your company, Healthy Gyms Limited, owns and manages a number of gyms and fitness centers around the state. Your boss has asked for your help

Your company, Healthy Gyms Limited, owns and manages a number of gyms and fitness centers around the state. Your boss has asked for your help with the following:

Customers have unlimited use of the gyms and fitness centers for an annual membership fee of $600. The gyms and fitness centers are open 24 hours a day, every day of the year.

Currently, your boss has been recording revenue per customer at $50 per month for each of the 12 months of the year. However, your boss has noticed that some months of the year are much busier than others.

For example, your boss thinks that the summer months (June, July, August) are twice as busy as the winter months (December, January, February). So your boss is wondering if we can record more revenue during the summer months than the winter months from customer memberships.

With reference to ASC606 and the 5-step revenue recognition process, Explain to your boss how and when to record revenue during the year.

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