u Exercise 6-7 (Algo) Performance obligations; customer option for additional goods or services; prepayment (LO6-3, 6-4, 6-5) 166 points Part A New York City daily newspaper called "Manhattan Today charges an annual subscription fee of 5432 Customers prepay their subscriptions and receive 230 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay 5410 for an annual subscription that also would include a coupon to receive a 40% discount on a one hour ride through Central Park in a horse-drawn carriage The list price of a carriage ride is $400 per hout. The company estimates that approximately 30% of the coupons will be redeemed Required: 1. How much revenue should Manhattan Today recognize upon receipt of the $410 subscription price 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of a new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation Defence Complete this question by entering your answers in the tabs below. Red 1 and 2 Rea2 1. How much revenue should Manhattan Today recognize upon receipt of the $410 subscription price? 2. How many performance obligations exist in this contract