The health fitness business has become increasingly popular as the sedentary lifestyle of most Americans has caused a large percentage of the population to feel, and be, out of shape. Health clubs have popped up all over, and with these clubs come some interesting accounting issues. Members typically sign up for one year and pay an up-front fee, followed by a monthly payment. The up-front fee covers, among other things, a health assessment by a club expert as well as a customized training program. For the monthly fee, members get the use of the facilities. The big accounting question is: How should the up-front fee be accounted for? Can the entire amount of the up-front fee be recognized at the beginning of the contract, or should it be recognized over the course of the year?