What is the value of the discount? 25% x $20,000? Or 20% x $20,000?

On May 1, 2016, Meta Computer, Inc., enters into a contract to sell 5,000 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $95,000, to be settled by a cash payment on May 1. Deliver is scheduled for June 1, 2016 As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $20,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.60 per unit. Required: l. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2016. 3. Assume the same facts and circumstances as above s , except that Meta gives a 5% discount option tc instead of 25%. In this case, what journal entry would Meta record on May 1, 2016