Chapter 19, Problem 19.8.2E

To determine

Introduction: Non- refundable initiation fees refers to the fees charged by the organizations at the time of entrance of a new member in the organization. This fees will under no circumstances be refunded to the members and hence the name non- refundable. This is regarded as the revenue for the organization.

To choose: The amount of initiation fees to be recorded as the revenue for the year 20X1.