Note:-• Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.• Answer completely.• You will get up vote for sure. Prepare journal entries to record (1) membership fees collected in cash in the first half of fiscal year 2020 and (2) membership fee revenue recognized over that period.AccountDebitCreditCashDeferred membership feesTo record membership fees collected.Deferred membership feesMembership fee revenueTo record membership fee revenue recognized.0042300x0x0✓423 ✓ Accounting for Membership Fees and Rewards ProgramBJ's Wholesale Club Holdings, Inc., provides the following description of its revenue recognition policies for membership fees and its reward program.Performance ObligationsThe Company identifies each distinct performance obligation to transfer goods (or bundle of goods) or services. The Company recognizes revenue as it satisfies a performance obligation by transferring control ofthe goods or services to the customer ...Merchandise sales-The Company recognizes sale of merchandise at clubs and gas stations when the customer takes possession of the goods and tenders payment...BJ's Perks Rewards and My BJ's Perks programs-The Company's BJ's Perks® Rewards membership program allows participating members to earn 2% cash back, up to a maximum of $500 per year, on qualifiedpurchases made at BJ's. The Company also offers a co-branded credit card program, the My BJ's Perks® program, which allows My BJ's Perks® Mastercard credit card holders to earn up to 5% cash back on eligiblepurchases made at BJ's up to 2% cash back on purchases made with the card outside of BJ's. Cash back is in the form of electronic awards issued in $20 increments that may be used online or in-club at the registerand expire six months from the date issued.Earned rewards may be redeemed on future purchases made at the Company. The Company recognizes revenue for earned rewards when customers redeem such rewards as part of a purchase at one of theCompany's clubs or the Company's website. The Company accounts for these transactions as multiple element arrangements and allocates the transaction price to separate performance obligations using theirrelative fair values. The Company includes the fair value of award dollars earned in deferred revenue at the time the award dollars are earned...Membership-The Company charges a membership fee to its customers. That fee allows customers to shop in the Company's clubs, shop on the Company's website, and purchase gasoline at the Company's gasstations for the duration of the membership, which is generally 12 months. Because the Company has the obligation to provide access to its clubs, website, and gas stations for the duration of the membershipterm, the Company recognizes membership fees on a straight-line basis over the life of the membership...The following data were extracted from income statement, balance sheet, and disclosure notes of BJ's 10-K annual report for 2020:($ millions)Net salesMembership fee incomeTotal revenuesTwenty-Six WeeksEnded February 1, 2020$18,045423$18,467Deferred revenue-membership feesFebruary 1, 2020 February 2, 2019$201.6$188.2Prepare journal entries to record (1) membership fees collected in cash in the first half of fiscal year 2020 and (2) membership fee revenue recognized over that period.

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Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…