Write a paper discussing the accounting concepts behind reportingunearned income.

Caleb’s Body Shop is a gym that sells annual memberships for $1,200. Each membership sold includes 12 coupons for $1 off at the gym’s juice bar — the coupons aresimilartogiftcards. (When a gym member ship is sold,there fore,the gym is obligated to provide two different services.) However, past experience shows that only 50% of the coupons are actually redeemed. State which accounts should be debited and credited, for how much, and explain why.o Requirements – Instructions:1) Write a paper discussing the accounting concepts behind reportingunearned income.2) Write one paragraph discussing how to report contingent liabilities.3) Write one paragraph defining and explaining multiple performanceobligations.4) Give the journal entry to record the sale of one membership.5) Write one paragraph explaining the entry in (4).