Antonio's Car Services provides maintenance services for motorized vehicles. In March 2024, Rick placed an order for a new set of tires for $410. When a customer purchases goods or services in excess of $300, Antonio's gives the customer a 20% discount coupon for future purchases made in the next three months. Antonio's estimates that approximately 75% of customers utilize the coupon and that on average those customers will purchase goods or services that typically sell for $60.

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.

 

 

Answer rating: 100% (QA)

To record revenue for the transaction using the residual method 1 Determine the standalone selli... View the full answer