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2) (3.5 points) Amazing Accountants Inc sells a year-long subscription bundle to its streaming video service, including the hit show Closing Entries, for $400 during

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2) (3.5 points) Amazing Accountants Inc sells a year-long subscription bundle to its streaming video service, including the hit show Closing Entries, for $400 during a special promotion. In addition to the subscription, customers who purchase the bundle also receive a t-shirt featuring the slogan for Closing Entries ("Temporary Accounts to Zero, Permanent Hero") which is mailed to their house 10 days after they purchase the subscription. In addition, customers who sign up during the promotion receive two discount coupons (details provided below) via email. Both coupons expire 1 year after the initial purchase. The company normally sells the year-long subscription to the streaming video service alone for $440. The value of the t-shirt is $40 if sold alone. The Calculator Coupon provides $10 off a calculator ordered from the store on the company's website. The regular price of the calculator is $50. The company normally offers 20% off all product orders from its website store. The company estimates 60% of customers will use this coupon. The Musical Coupon provides a discount of 25% off the purchase of a pair of tickets to the Tony Award winning musical Debits On The Left. The standard price for a pair of tickets is $400. The company estimates 20% of customers will take advantage of this coupon. . a) (0.5 point) How many performance obligations are there in the bundle (no explanation required)? b) (1 point) Allocate the transaction price of the bundle to the performance obligations. c) (1 point) Assume that a customer purchases and pays for a subscription bundle on July 1. Record the journal entry including separate lines for revenue or unearned revenue related to each performance obligation for July 1. d) (1 point) Amazing Accountants' fiscal year ends on December 31. How much total revenue will the company have recognized in this FY for the customer from part c? Assume the customer has not taken advantage of either discount coupon as of December 31

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