Orange Inc. offers a coupon for 50% off a new watch when a customer buys its new oPhone. How many performance obligations are represented in this contract? The market price for the oPhone is $600. The watch usually retails for $200, and Orange anticipates 25% of customers will use the coupon to purchase a new watch next month.

1. How many performance obligations are represented in this contract?

2. What is the stand-alone price of the phone?

3. What is the stand-alone price of the coupon?

4. If one watch were sold under the contract described above, what should be recorded as the Credit to sales revenue on the date of the sale? (if nothing, enter 0)

5. If one watch were sold under the contract described above, what should be recorded as the Credit to deferred revenue on the date of the sale? (if nothing, enter 0)