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1.Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling "SunBoots" to customers for $70 per pair. Clarks obtains the boots from wholesalers for $40 per pair. As part of the sales contract, Clarks gives customers who participate in an online survey a 30 percent discount voucher for any additional purchases in the next 30 days. Clarks anticipates that approximately 20 percent of customers will complete the survey and utilize the coupon, purchasing an average of $100 of goods. Clarks intends to offer a 10 percent discount on all sales during the next 30 days as part of a seasonal promotion during the Thanksgiving holidays.
Required:1. Determine whether the discount voucher by Clarks is a separate performance obligation.2. Prepare a journal entry to record the sale of 1,000 pairs of SunBoots.
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