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What is the revenue recognition issue

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Question - Fred sold vacuum cleaners to Barneys stores. Barney is not allowed to discount the vacuum cleaners. Freds developed a manufacturer's coupon, entitling customers to $100 off Clean Rite, with a 90-day expiration date. The coupon would allow customers to redeem it on purchases from either Fred's website or through sales in Barney's stores. Barney's would be reimbursed by Fred for any coupons received from Barney's customers. The coupon, one per customer, would be advertised nationwide on September 1, explicitly redeemable only at Fred's and at point-of-sale at Barneys. What is the revenue recognition issue?

Reference no: EM133177171

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