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Exercise 5-6 Performance obligations; customer option for additional goods or services [LO5-2, 5-4, 5-5] Clarks...

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Exercise 5-6 Performance obligations; customer option for additional goods or services [LO5-2, 5-4, 5-5] Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to customers for $75 per pair when a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for any additional future purchases made in the next 30 days. Customers can't obtain the discount coupon otherwise. Clarks anticipates that approximately 20% of customers will utilize the coupon, and that on average those customers will purchase additional goods that normally sell for $100. Required: 1. How many performance obligations are in a contract to buy a pair of SunBoots? 2. Prepare a journal entry to record revenue for the sale of 1,200 pairs of SunBoots, assuming that Clarks uses the residual method to estimate the stand-alone selling price of SunBoots sold without the discount coupon Complete this question by entering your answers in the tabs below. Required 1Required 2 How many performance obligations are in a contract to buy a pair of SunBoots? umber of performance obligations Required 1 Required 2>

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