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Brief Exercise 6-9(Static) Performance obligations; warranties [LO6-5] Vroom Vacuums sells the Tornado vacuum...

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Accounting

Brief Exercise 6-9(Static) Performance obligations; warranties [LO6-5]
Vroom Vacuums sells the Tornado vacuum cleaner. Each Tornado has a one-year warranty that covers any product defects. When
customers purchase a Tornado, they also have the option to purchase an extended three-year warranty that covers any breakage or
maintenance. Customers pay 20% less for the extended warranty if they buy it at the same time they buy a Tornado.
How many performance obligations exist in the implied contract for the purchase of a vacuum cleaner?
Number of performance obligations in the contract
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