A customer purchases a pair of sunboots

Assignment Help Accounting Basics
Reference no: EM131123097

Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling Ac€A? SunBootsAc€? to customers for $70 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for any additional future purchases made in the next 30 days. Customers canAc€?ct 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. Prepare a journal entry to record revenue for the sale of 1,000 pairs of SunBoots, assuming that Clarks uses the residual method to estimate the stand-alone selling price of SunBoots sold without the discount coupon. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM131123097

Questions Cloud

Explain the role of ethics in leadership : Define leadership effectiveness and explain the role of ethics in leadership. Are effective and ethical leadership mutually exclusive concepts? Why or why not?
What is the power radiated by the person : A light bulb filament has an emissivity of 0.29. At a temperature of 2790 K, the filament radiates 55 W of power. What is the surface area of the filament? ___ m^2
Pursuant to a corporate reorganization : Pursuant to a Corporate reorganization, Marcia exchanged stock she owned in Cott Corp. for stock in Mills Corp . valaued at $70,000, plus a Mills Corp bond worth $9,000 (face amount of $10,000). Marcia paid $65,000 for her stock in Cott 18 months ..
Analyze how a leader can use these tools to motivate staff : Analyze alternative tools a manager can use to motivate staff. Analyze how a leader can use these tools to motivate staff. Explain how leaders and managers motivate staff differently.
A customer purchases a pair of sunboots : Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling Ac€A? SunBootsAc€? to customers for $70 per pair.
Find this temperature : Find this temperature. Assume that the specific heat of liquid and of gaseous aluminum is 1170 J/kg· °C.
Find the acceleration of the center of the wheel : The wheel has mass m, radius R and moment of inertia IG = mR2/2. The wheel is initially at rest, Find the acceleration of the center of the wheel if F = mg/2
How fast the baseball is moving as it leaves the bat : The coefficient of restitution between the bat and the ball is 0.54. Estimate how fast the baseball is moving as it leaves the bat following the collision.
Do you feel that lobbyists and special interest groups exert : Do you feel that scientists should be cut out of the policy making process, particularly on environmental issues, when their research is proven and widely accepted and is being ignored and disputed? Politicians ultimately make the decisions, but s..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Total costs assigned to the inventory

Charley Company's Assembly Department has materials cost at $3 per unit and conversion cost at $6 per unit. There are 9,000 units in ending work in process, all of which are 70% complete as to conversion costs. How much are total costs to be assig..

  Cash sale of goods for more than their costpayment of

indicate how each of the following transactions affects the accounting equation.a. purchase of supplies on

  Hire an employee for a position

For this assignment, you should create a plan to hire an employee for a position within your organization to support a recent change. In this plan, you should include the following:

  On december 31 of the current year a companys unadjusted

on december 31 of the current year a companys unadjusted trial balance included the following accounts receivable debit

  Watts and zimmermans positive accounting theory

watts and zimmermans positive accounting theory isa. one of several normative theories of accounting b. one of

  Division b had an roi last year of 14 the divisions

division b had an roi last year of 14. the divisions minimum required rate of return is 12. if the divisions average

  Specializes in building replicas of historic houses

Sanders Construction Co. specializes in building replicas of historic houses. Brett Sanders, president of Sanders Construction, is considering the purchase of various items of equipment on July 1, 2014 for $300,000.

  What are some major components of an internal control

what are some major components of an internal control system? are these components always necessary? explain your

  Analyze the items listed in the performance report and

yuma foods acquire aldos tortillas several years ago. aldos continued to operate as an independent company except that

  The following information is available on a depreciable

Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

  Accounting rule against dobbs practice

Do you approve or disapprove of Dobbs's manner of deciding when to ship goods to customers and record the sales revenue? If you approve, give your reason. If you disapprove, identify a better way to decide when to ship goods. Is there an accountin..

  Net income

Chen, Inc. purchases 1,000 shares of its own previously issued $5 per common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital,..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd