A portion of the proceeds from the bond issuance was invested in an arrangement with a furniture design and manufacturing firm called Beautiful Things Inc. (BTI). Some of LLI's apartment buildings had unused ground-floor space, and LLI converted those spaces into "pop-up" furniture stores. LLI acquired sufficient volume of furniture from BTI to stock these pop-up stores. BTI was enthusiastic about their venture with a prestigious firm like LLI and provided an excellent price on the inventory.

While the pop-up stores were open to the general public, LLI assumed that the primary customers would be tenants of the buildings where the pop-up stores were located. Management reasoned that tenants would appreciate having the ability to purchase beautiful and high-quality furnishings without having to leave their building.

On November 1, 2019, the first six pop-up furniture stores opened in LLI's apartment buildings. Sales have been surprisingly slow. To improve sales in December, management offered a holiday promotion to tenants of the buildings in which the pop-up stores were located. A furniture purchase of $4,000 or more would entitle the tenant to free rent in January 2020. In total, 67 tenants took advantage of this deal and made qualifying purchases in December 2019, resulting in sales proceeds of $335,000. The prices charged reflected the recommended selling prices set by BTI.

The sales revenue was recorded as follows in the 2019 financials:

DR Cash 335,000

CR Sales revenue 335,000

DR Cost of sales 200,000

CR Inventory 200,000

The furniture was delivered to customers within 12 hours of the sale occurring.

Management is not sure whether anything needs to be recorded in the 2019 financial statements for January's "free" rent. The total January rent revenue forgone by LLI is $184,250. This rent would have been due from tenants in January of 2020.

Question: Using IFRS 15, prepare a analysis of the transaction using the five steps of revenue recognition.