DGA Associates, Incorporated sells computer workstations designed for architects. In 2024, it sold 120 workstations for $360,000. For each workstation sold, DGA distributed a 40% discount coupon for any additional future purchases made in the next 12 months. Based on historical experience, DGA expects that approximately 30% of the coupons will be utilized, and the goods purchased with the coupons would normally sell for $350.

Required:

(a) How many performance obligations are in a contract to purchase a computer workstation?

(b) Prepare a journal entry to record revenue for the sale of 120 computer workstations, assuming that DGA uses the residual method to estimate the stand-alone selling price of the workstations sold without the discount coupon.