Hill and Dale Enterprises offers a promotion that provides a customer signing up for a membership the opportunity to enroll in educational courses. A customer signing up the first time is entitled to a 25% discount off a full year 's worth of courses. A new membership costs $1,600 annually and a year's worth of courses another $1,200. Hill and Dale estimate that approximately 40% of the customers will take advantage of the 25% discount. The company is offering a 10% discount on all courses at this time.

Required:
a). Identify the separate performance obligations in the new customer deal.
b). Allocate the price to the separate performance obligations. Use the most-likely amount approach.
c). Record the journal entry to record the sale of a new membership and one year of courses. The customer paid cash.

Answer rating: 100% (QA)

a The separate performance obligations in the new customer ... View the full answer