Question 1

Question 2

BEAN (a coffee shop) normally sells a large cup of coffee for $3. To promote the sale of its coffee beans, BEAN decides to offer customers a $2 discount on the purchase of a large cup of coffee when they buy a bag of coffee beans (which normally sell for $12) at the same time. A customer purchased a bag of coffee beans and a large cup of coffee for $13. Which of the following is correct regarding the coffee and the coffee beans sold together? the two are interdependent and interrelated. the two products are distinct and unrelated. 0 the two products should be considered one performance obligation. determination cannot be made. On Jan 1, 2017, Canon Corp. sold CDs to retailers on account and recorded sales revenue $700,000. Canon Corp grants the right to return CDs that do not sell in 2 months following delivery. Past experience indicates that the normal return rate is 15%. On March 1, 2017, Canon recorded actual return of CDs totaling $78,000. On March 31 when preparing adjusting journal entries, how much should Canon recognize as "Sales returns and allowances"? 27,000 0 105,000 none of the above