Hello, I am operating a gym. Members purchase packages, say 10 lessons for $500, and pay in advance. The package comes with an expiry date of 3 months. Any suggestion on how to record the transactions? Technically, $500 has to be accrued and recognized as income as and when the member come for the lesson. But I need to issue an official receipt for the $500 upon receipt of the cash. I can see 2 ways of doing it 1. Recognized $500 upon receipt as Invoice - do accrual on year end by entering a journal 2. Recognised $500 as Fee accrued. Issue an invoice every time when member comes for a lesson. Am I on the right track?
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