Question 2: J.K. Bakery Jessica is the owner of a successful bakery, J.K. Bakery, located on the Upper West Side. Her bakery specializes in mini pistachio cakes, mini honey cakes and brownies. She sells the mini cakes for $6 and the brownies for $2. Jessica recently introduced new gluten-free sugar-free cupcakes. To promote the new product, a $1 voucher that can be used for future purchases, valid for one year, was given to all customers that bought a $5 gluten-free sugar-free cupcake. During December 2018, 1,000 gluten-free sugar-free cupcakes were sold. None of the vouchers related to these cupcakes had been redeemed by the end of 2018. Given the success of the bakery Jessica expects 90% of the vouchers from these sales to be redeemed in 2019. Included in the sales of 2018 is $5,000 for the sales of these cupcakes. Additional information: For this question assume that Jessica is an expert in her field, and therefore her estimates are reliable and can be used for any necessary computations. Required: a. When taking into consideration the new revenue recognition standard learned in class, U.S. GAAP Topic 606 (IFRS 15), is there any issue with the amount of revenue recognized for the sale of these cupcakes? Explain why or why not. b. Is there an alternative amount that should be recognized? Explain your answer briefly and show any related computations. c. How would your answer to part b change if the voucher was for 50% off an item in the store, as opposed to the cash amount of $1? For this part of the question assume that Jessica estimates that 20% of the vouchers will be used for Brownies, 40% for Pistachio Cakes, and 40% will go unused. d. What accounts are affected by the sale (irrespective of the type of voucher issued)? Assume the sale is for cash. Please note the type of each account (asset, liability or equity) and whether it increased or decreased. Ignore any cost related accounts