Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. antonios car services provides maintenance service

Antonios Car Services provides maintenance services for motorized vehicles. In March 2024, Rick placed an...

60.1K

Verified Solution

Question

Accounting

Antonios Car Services provides maintenance services for motorized vehicles. In March 2024, Rick placed an order for a new set of tires for $440. When a customer purchases goods or services in excess of $400, Antonios gives the customer a 20% discount coupon for future purchases made in the next three months. Antonios estimates that approximately 75% of customers utilize the coupon and that on average those customers will purchase goods or services that typically sell for $80.
Required:
(a) How many performance obligations are in Ricks contract?
(b) Prepare a journal entry to record revenue for this transaction, assuming that Antonios uses the residual method to estimate the stand-alone selling price of new tires sold without the discount coupon.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Herro Corporation began operations inJuly and manufactured 40,000 units during the month with thefollowing...Herro...

Biology
1.2K views

14 What happens when a species is more successful than another 15 How do genetic...

Biology
1.2K views

oths have even appeared to orbit around them the streetiamps come on a lang row...

Physics
1.2K views

Question 25 192 12 V 202 A www 192 Calculate VB B 5V 292 6...

Physics
1.2K views

simple harmonic motion is given by y A Asinot Bcoswt Then the amplitude of its...

Basic Math
1.2K views

Inde A circuit system is given in the figure Assume the components fail independently a...

Basic Math
1.2K views

Write the Egyptian numeral below as a Hindu Arabic numeral The Hindu Arabic numeral is...

Statistics
1.2K views

The ages in years of 10 men and their systolic blood pressures In for the...

Calculus
1.2K views

What is the exact value of tan (5?/6)?a. ?3b. -?3c. ?3/3d. -?3/3

Algebra
1.2K views

Apply the Gram Schmidt orthonormalization process to transform the given basis for R into an...

Accounting
1.2K views

Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021,...

Accounting
1.2K views

Harry Ltd determined its profit attributable to ordinary shareholders for the reporting period ended 30...