Clarks Incorporated, a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to

customers for $$60$ 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 can't 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 $$350.$

Required:

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

Assume Clarks cannot estimate the stand$-$alone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry

to record revenue for the sale of $1,300$ pairs of SunBoots, assuming that Clarks uses the residual method to estimate the stand$-$

alone selling price of SunBoots sold without the discount coupon.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Assume Clarks cannot estimate the stand$-$alone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to

record revenue for the sale of $1,300$ pairs of SunBoots, assuming that Clarks uses the residual method to estimate the stand$-$alone

selling price of SunBoots sold without the discount coupon.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.