Brief Exercise $6-9($Static$)$ Performance obligations; warranties $[$LO$6-5]$

Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one$-$year warranty that covers any product defects. When customers purchase a Tornado, they also have the option to purchase an extended three$-$year warranty that covers any breakage or maintenance. Customers pay $20\%$ less for the extended warranty if they buy it at the same time they buy a Tornado.

How many performance obligations exist in the implied contract for the purchase of a vacuum cleaner?

Number of performance obligations in the contract

Identify the best descriptions of performance obligation from the following list.

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.

$$

Delivery of vacuum cleaner

$?$

One$-$year quality$-$assurance warranty

$2$ Option to purchase the three$-$year extended warranty

$2$ Purchase of vacuum cleaner