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Clarks Incorporated, a shoe retailer, sells boots in different styles. In early November the company starts selling SunBoots to customers for $ 6 5 per

Clarks Incorporated, a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to customers for $65 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% 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 20% of customers will utilize the coupon, and that on average those customers will purchase additional goods that normally sell for $140.
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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 1,000 pairs of SunBoots, assuming that Clarks uses the residual method to estimate the standalone selling price of SunBoots sold without the discount coupon.
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How many performance obligations are in a contract to buy a pair of SunBoots?
Number of performance obligations
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