1. Identity the number of performance obligations and allocate transaction price.

2. Prepare the journal entry to account for the transaction as of February 12, 2021

PROBLEM 1 (13pts.) On February 12, 2021, X Home and Garden enters into contract with a local business to provide weekly grass-cutting services for 6 months, and receives $2,000 in advance. As part of a local business promotion, X offers a 50% discount on any barbecue grill with a list price in excess of $200. In the past, X charged the same amount ($2,000) for the same weekly grass-cutting service, but without the grill discount coupon Based on historical experience with other clients, X estimates that about 40% of the coupons will be redeemed, purchasing grills with an average total list price of $400