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San Antonio Premier Car Services provides a variety of maintenance services for vehicles. Ricardo placed an order in March 2024 for a new set
San Antonio Premier Car Services provides a variety of maintenance services for vehicles. Ricardo placed an order in March 2024 for a new set of tires for $395. When a customer purchases goods or services in excess of $360, San Antonio's gives the customer a 25% discount coupon good for three months for future purchases made during that time period. San Antonio's estimates that approximately 80% of customers utilize the coupon and that, on average, those buyers will purchase goods or services that typically sell for $90. Required: (a) How many performance obligations are in Ricardo's contract? (b) Prepare a journal entry to record revenue for this transaction, assuming that San Antonio's uses the residual method to estimate the stand-alone selling price of new tires sold without the discount coupon. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a journal entry to record revenue for this transaction, assuming that Antonio's uses the residual method to estimate the stand- alone selling price of new tires sold without the discount coupon. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to whole dollars. View transaction list Show less
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a There is 1 performance obligation in Ricardos contract which is the installation of a new set of ...Get Instant Access to Expert-Tailored Solutions
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