1. Gramm Enterprises sells exercise bicycles for $2,500. Gramm ran a recent Black Friday special that also gave customers who purchased the bicycle a coupon for 15% off a bike tour of the Netherlands as sold by Tour Bike Company. Gramm estimates that 30% of its customers will redeem the bike tour coupon when purchasing a tour from Tour Bike Company, with an average tour price of $1500. A. How many performance obligations are there in the contract? List each one.

B. What is the standalone selling price for (each of) the performance obligation(s)?

C. During the month of November, Gramm company sold 60 bike packages for cash. Record the summary journal entry to recognize revenue from the sales, if any.

D. Over the next year, 10 of Gramm's customers redeemed the tour coupon, each on a tour costing $1500. Record Gramms revenue journal entry for the redemption of these coupons, if any.