Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling SunBoots to customers for $70 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 20% discount coupon for any additional future purchases made in the next 30 days. Customers cant obtain the discount coupon otherwise. Clarks anticipates that approximately 10% of customers will utilize the coupon, and that on average those customers will purchase additional goods that normally sell for $150. Required:

1. How many performance obligations are in a contract to buy a pair of SunBoots?

2. Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of 1,100 pairs of SunBoots.

Required Required 1 2 How many performance obligations are in a contract to buy a pair of SunBoots? Number of performance obligations Required Required 1 2 Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of 1,100 pairs of SunBoots. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less A View transaction list Journal entry worksheet Record the revenue for the sale of 1,100 pairs of SunBoots. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry View general journal Clear entry