Pets Inc. launches a new advertising promotion where, for each purchase over $$30,$ it offers a coupon for a $35\%$ discount on a future purchase. There is a limit of one coupon per customer. Pets Inc. estimates that $28\%$ of customers receiving the coupon will redeem the coupon on an average purchase of $$24.$ Sales on the first day of the one$-$week promotional period totaled $$480,000$ resulting in $4,800$ coupons distributed. Assume all sales were cash sales. Cost of sales is $45\%$ of the selling price.Identifying and Recording Customer Option for Additional Merchandise

Pets Inc. launches a new advertising promotion where, for each purchase over $$30,$ it offers a coupon for a $35\%$ discount on a future purchase. There is a limit of one coupon per

customer. Pets Inc. estimates that $28\%$ of customers receiving the coupon will redeem the coupon on an average purchase of $$24.$ Sales on the first day of the one$-$week promotional

period totaled $$480,000$ resulting in $4,800$ coupons distributed. Assume all sales were cash sales. Cost of sales is $45\%$ of the selling price.

a$.$ Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public

online or in company fliers have a maximum discount of $20\%.$

Two performance obligations

b$.$ Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices.

$-$Note: Carry all decimals in calculations; round the final answer to the nearest dollar.

$71F$

Mostly clearIdentifying and Recording Customer Option for Additional Merchandise

Pets Inc. launches a new advertising promotion where, for each purchase over $$30,$ it offers a coupon for a $35\%$ discount on a future purchase. There is a limit of one coupon per

customer. Pets Inc. estimates that $28\%$ of customers receiving the coupon will redeem the coupon on an average purchase of $$24.$ Sales on the first day of the one$-$week promotional

period totaled $$480,000$ resulting in $4,800$ coupons distributed. Assume all sales were cash sales. Cost of sales is $45\%$ of the selling price.

a$.$ Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public

online or in company fliers have a maximum discount of $20\%.$

Two performance obligations

b$.$ Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices.

$-$Note: Carry all decimals in calculations; round the final answer to the nearest dollar.

a$.$ Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public online or in company fliers have a maximum discount of $20\%.$

Answer

Two performance obligations

b$.$ Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices.

$$Note: Carry all decimals in calculations; round the final answer to the nearest dollar.