On April 1, 2020, Tulane Electronics enters into a contract to sell XPS computers to...
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On April 1, 2020, Tulane Electronics enters into a contract to sell XPS computers to Precision Equipment at $100,000, which is also the stand-alone selling price of the computers. Tulane will receive cash payment immediately. Dellvery is scheduled for May 1, 2020. As part of the contract, Tulane offers a 30% discount coupon to Precision for any purchases in the next year. Precision also offers a 5% discount on all sales to all customers. Based on experience, Tulare estimates a 20% probability that Precision will redeem the coupon, and that the coupon will be applied to $60,000 of purchases. How much unearned revenue (rounded to the next thousand) wil Tulane Electronics record for the sale of XPS computers? O a. $3,000 O b. $60,000 O c. $97,000 O d. $100,000 O e. $103.000
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