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Antonios Car Services provides maintenance services for motorized vehicles. In March 2024, Rick placed an...

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Accounting

Antonios Car Services provides maintenance services for motorized vehicles. In March 2024, Rick placed an order for a new set of tires for $440. When a customer purchases goods or services in excess of $400, Antonios gives the customer a 20% discount coupon for future purchases made in the next three months. Antonios estimates that approximately 75% of customers utilize the coupon and that on average those customers will purchase goods or services that typically sell for $80.
Required:
(a) How many performance obligations are in Ricks contract?
(b) Prepare a journal entry to record revenue for this transaction, assuming that Antonios uses the residual method to estimate the stand-alone selling price of new tires sold without the discount coupon.

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