Clarks Incorporated, a shoe retailer, sells boots in different styles. In early November, the company...
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Clarks Incorporated, a shoe retailer, sells boots in different styles. In early November, the company starts selling SunBoots to customers for $ per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a discount coupon for any additional future purchases made in the next days. Customers cant obtain the discount coupon otherwise. Clarks anticipates that approximately of customers will utilize the coupon, and that on average those customers will purchase additional goods that normally sell for $
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How many performance obligations are in a contract to buy a pair of SunBoots?
Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of pairs of SunBoots, assuming that Clarks uses the residual method to estimate the standalone selling price of SunBoots sold without the discount coupon.
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