A large clothing retailer chain, Koll's, offers a sales incentive program where customers receive direct credit...

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A large clothing retailer chain, Koll's, offers a sales incentive program where customers receive direct credit toward future purchases based upon the dollar amount of purchases today. For every $50 spent today, the customer will earn a $6 credit to be used at Koll's in two weeks. The credit expires 5 days after it becomes active. Not all customers will redeem the credit in the 5-day window of time. Based upon historical trends, Koll's estimates that 35% of the credits will be redeemed. a. Determine how many performance obligations are included in a sales transaction during the sales incentive program. Two performance obligations + b. Assuming that Koll's sold $350,000 of merchandise (cost of $140,000) during the first day of the sales incentive period and 7,000, $6 credits were given, record the journal entry(ies) to record sales revenue. Assume all sales were cash sales. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Merchandise Customer option-merchandise credit Cash Sales Revenue Transaction Price as Stated Standalone Selling Price $ 0 x $ 0 x $ 0 0 x 0 $ 0 $ Account Name Debit Credit 350,000 0 210,000 x 0 0x To record the sale of merchandise To record the cost of sale of merchandise 0 0 0x 0x Total Allocated Transaction Price (rounded) 0 x 0 c. Record a summary entry to recognize revenue (if any) during the 5-day merchandise credit redemption period, assuming that 35% of the credits are redeemed. Account Name To receognize revenue. Debit Credit 0 0 0x 0 x d. Record a summary entry to recognize revenue (if any) at the conclusion of the 5-day merchandise credit redemption period, assuming that no credits are redeemed. Account Name To receognize revenue. Debit Credit 0 0 x 0 0x A large clothing retailer chain, Koll's, offers a sales incentive program where customers receive direct credit toward future purchases based upon the dollar amount of purchases today. For every $50 spent today, the customer will earn a $6 credit to be used at Koll's in two weeks. The credit expires 5 days after it becomes active. Not all customers will redeem the credit in the 5-day window of time. Based upon historical trends, Koll's estimates that 35% of the credits will be redeemed. a. Determine how many performance obligations are included in a sales transaction during the sales incentive program. Two performance obligations + b. Assuming that Koll's sold $350,000 of merchandise (cost of $140,000) during the first day of the sales incentive period and 7,000, $6 credits were given, record the journal entry(ies) to record sales revenue. Assume all sales were cash sales. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Merchandise Customer option-merchandise credit Cash Sales Revenue Transaction Price as Stated Standalone Selling Price $ 0 x $ 0 x $ 0 0 x 0 $ 0 $ Account Name Debit Credit 350,000 0 210,000 x 0 0x To record the sale of merchandise To record the cost of sale of merchandise 0 0 0x 0x Total Allocated Transaction Price (rounded) 0 x 0 c. Record a summary entry to recognize revenue (if any) during the 5-day merchandise credit redemption period, assuming that 35% of the credits are redeemed. Account Name To receognize revenue. Debit Credit 0 0 0x 0 x d. Record a summary entry to recognize revenue (if any) at the conclusion of the 5-day merchandise credit redemption period, assuming that no credits are redeemed. Account Name To receognize revenue. Debit Credit 0 0 x 0 0x