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Number of performance obligations in the contract: 2. |
The delivery of SunBoots is one performance obligation. The discount coupon for additional future purchases is a second performance obligation because it provides a material right to the customer that the customer would not receive otherwise. That right to receive a discount is both capable of being distinct, as it could be could be sold or provided separately, and it is separately identifiable, as it is not highly interrelated with the other performance obligation of delivering SunBoots, and the seller’s role is not to integrate and customize them to create one product. So, the discount coupon is distinct and qualifies as a performance obligation. 2.
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ailer, sells boots in different styles. In early November the company starts selling "SunBoots"' to customers...
Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to customers for $70 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for any additional future purchases made in the next 30 days. Customers can't obtain the discount coupon otherwise. Clarks anticipates that approximately 20% of customers will utilize the coupon, and that on average those customers will purchase additional goods...
Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling "Sun Boots" to customers for $60 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 20% discount coupon for any additional future purchases made in the next 30 days. Customers can't obtain the discount coupon otherwise. Clarks anticipates that approximately 10% of customers will utilize the coupon, and that on average those customers will purchase additional...
Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to customers for $60 per pair. When a customer purchases a pair of SunBoots Clarks also gives the customer a 20% discount coupon for any additional future purchases made in the next 30 days. Customers can't obtain the discount coupon otherwise. Clarks anticipates that approximately 10% of customers will utilize the coupon, and that on average those customers will purchase additional goods...
answer both please. Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to customers for $75 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for any additional future purchases made in the next 30 days. Customers can't obtain the discount coupon otherwise. Clarks anticipates that approximately 20% of customers will utilize the coupon, and that on average those customers will...
Exercise 6-6 (Algo) Performance obligations; customer option for additional goods or services [LO6-2, 6- 4, 6-5) Clarks Inc. a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to customers for S70 per pair When a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for any additional future purchases made in the next 30 days. Customers can't obtain the discount coupon otherwise. Clarks anticipates that approximately 20%...
1. On March 1, 2021, Gold Examiner receives $153,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink’s, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,463 per...
Antonio’s Car Services provides maintenance services for motorized vehicles. In March 2018, Rick placed an order for a new set of tires for $350. When a customer purchases goods or services in excess of $300, Antonio’s gives the customer a 25% discount coupon for future purchases made in the next three months. Antonio’s estimates that approximately 80% of customers utilize the coupon and that on average those customers will purchase goods or services that typically sell for $75. Required: (a)...
Problem 1 (2/4, 6 points total) Antonio's Car Services provides Rick placed an order for an ar Services provides maintenance services for motorized vehicles. In March 2018, aced an order for a new set of tires for $350. When a customer purchases goods or services in excess of $300. Antonio's gives the customer a 25% discount coupon for future purchases made in the next three months. Antonio's estimates that approximately 80% of comers utilize the coupon and that on average...
Problem 3 DGA Associates, Inc. sells computer workstations designed for architects. In 2018, it sold 120 workstations for $360,000. For each workstation sold. DGA distributed a 40% discount coupon for any additional future purchases made in the next 12 months. Based on historical experience, DGA expects that approximately 30% of the coupons will be utilized, and the goods purchased with the coupons would normally sell for $350. Required: (a) How many performance obligations are in a contract to purchase a...
A certain company sells many styles of earrings but all are sold for the same price: $16 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) 32,000 June (budget) 39,000 February (actual) 46,000 July (budget) 42,000 March (actual) 27,000 August (budget) 24,000 April (budget) 68,000 September (budget) 33,000 May (budget) 71,000 Sufficient inventory should be on hand at the end of each month...