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Question - Orange Inc. offers a coupon for 50% off a new watch when a customer buys its new oPhone. The market price for the oPhone is $600.
The watch usually retails for $200, and Orange anticipates 25% of customers will use the coupon to purchase a new watch next month.
1. What is the total stand-alone selling price for: the oPhone? and the coupon?
2. Prepare the journal to enter in Orange's books when a customer purchases this package (one coupon with one oPhone) for $600. (Assume a cash sale; ignore the entry for cost of goods sold.).
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