80.2K

Verified Solution

Link Copied!

what le correct or incorrect for the work you have completed so fot. It does not indicate completion 4 Return to question Exercise 6-6 (Algo) Performance obligations; customer option for additional goods or services; residual method [LO6-2, 6-4, 6-6] 166 points Claries in a shoe retailer sells boots in different styles. In earty November the company startsseling SunBoots to customers for 575 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 wil ze 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. 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 1.200 paus of SunBoots Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 1,200 pairs of SunBoots, Cur no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Transaction General Journal Debit Credit 1 1 90.000 Cash Sales revenue Deferred revenue - coupons 84,500 5.400

Answer & Explanation Solved by verified expert

See Answer