Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling "Sunboots" to the customers for $70 per pair. When the customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for an additional future purchase made in the next 30 days. Customers can't obtain the discount coupon otherwise. Clarks anticipates that approximately 20% of the customers will utilize the coupon, and that on average those customers will purchase additional foods that normally sell for $100.

Required:

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

2) Prepare a journal entry to record revenue for the sale of 1,000 pairs of SunBoots, assuming that Clarks uses the residual method to estimate the stand-alone selling price of SunBoots sold without the discount coupon.