A large clothing retailer chain, Kolls, offers a sales incentive program where customers receive direct credit toward future purchases based upon the dollar amount of purchases today. For every $50 spent today, the customer will earn a $6 credit to be used at Kolls in two weeks. The credit expires 5 days after it becomes active. Not all customers will redeem the credit in the 5-day window of time. Based upon historical trends, Kolls estimates that 35% of the credits will be redeemed. a. Determine how many performance obligations are included in a sales transaction during the sales incentive program. Answer Two performance obligations b. Assuming that Kolls sold $550,000 of merchandise (cost of $220,000) during the first day of the sales incentive period and 11,000, $6 credits were given, record the journal entry(ies) to record sales revenue. Assume all sales were cash sales. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Transaction Standalone Total Allocated Performance Price Selling Transaction Price Obligations as Stated Price (rounded) Merchandise Answer 550000 Answer 550000 Answer 527831 Customer optionmerchandise credit Answer 0 Answer 23100 Answer 22169 550000 573100 550000 Account Name Debit Credit Cash 550000 0 Answer Sales Revenue 0 527831 Answer Deferred RevenueMerchandise Credit 0 22169 Answer To record the sale of merchandise Cost of Goods Sold 220000 0 Answer Inventory 0 220000 Answer To record the cost of sale of merchandise c. Record a summary entry to recognize revenue (if any) during the 5-day merchandise credit redemption period, assuming that 35% of the credits are redeemed. Account Name Debit Credit Deferred RevenueMerchandise Credit 23100 0 Answer Sales Revenue 0 23100 Answer To receognize revenue. d. Record a summary entry to recognize revenue (if any) at the conclusion of the 5-day merchandise credit redemption period, assuming that no credits are redeemed. Account Name Debit Credit Sales RevenueMerchandise Credit 0 Answer Sales Revenue 0 Answer To receognize revenue.