A New York City daily newspaper called Manhattan Today charges an annual subscription fee of $$108.$ Customers prepay their subscriptions and receive $250$ issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $$110$ for an annual subscription that also would include a coupon to receive a $40\%$ discount on a one$-$hour ride through Central Park in a horse$-$drawn carriage. The list price of a carriage ride is $$100$ per hour. The company estimates that approximately $30\%$ of the coupons will be redeemed.

Required:

How much revenue should Manhattan Today recognize upon receipt of the $$110$ subscription price?

How many performance obligations exist in this contract?

Prepare the journal entry to recognize sale of $14$ new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.

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Req $1$ and $2$

How much revenue should Manhattan Today recognize upon receipt of the $$110$ subscription price?

How many performance obligations exist in this contract?

Revenue

Number of performance obligations