Understanding Revenue Recognition and Receivables in Life Time

Life Time Fitness Revenue Recognition and Receivables Life Time Fitness Inc. (LTF) operates 109 centers under the LIFE TIME FITNESS® and LIFE TIME ATHLETIC® brands. Their current model centers target 6,500 to 10,500 memberships by offering, on average, 114,000 square feet of multi-use sports and athletic, professional fitness, family recreation, spa amenities and programs and services in a resort-like environment. Refer to LTF's Consolidated Statement of Income, Consolidated Balance sheet, and Note 2 (provided below) to answer the following questions: 1.When do you think that LTF recognizes revenue for the monthly membership dues? 2.When do you think that LTF recognizes revenue for the enrollment fees? 3.As of December 31, 2013, what was the total value of all services and products sold, but that LTF had not yet recognized as revenue? Answer:4.How much revenue will LTF book in 2014 if they do not sell any product or service in 2014? Answer: 5.As of December 31st, 2013, what percentage of LTF's outstanding accounts receivable (i.e., gross receivables) does it not expect to collect? Answer:calculations: 6.How much did LTF recognize for bad debt expense during the year ended December 31st , 2013? Answer: $ $ % $