Exercise 6-6 (Algo) Performance obligations; customer option for additional goods or services; residual method [LO6-2, 6-4, 6-6] 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 addition 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 that normally sell for $100. Required: 1. How many performance obligations are in a contract to buy a pair of SunBoots? 2. Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of 1,400 pairs of SunBoots. Complete this question by entering your answers in the tabs below. Required 1 Required 2 How many performance obligations are in a contract to buy a pair of SunBoots? Number of performance obligations Required 1 Required 2 > Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry to record revenue for the sale of 1,400 pairs of SunBoots. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the revenue for the sale of 1,400 pairs of SunBoots. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal