Hill's Hardware Store is offering an incentive to customers.  For every snowblowerr purchased at Hill's Hardware  the  customer will recieve a voucher for $25 off a future purchase.   Each sale of a snowblower also includes complimentary maintenance.  The  maintenance can be performed by other vendors but most customers choose to have the maintenance done by Hill's Hardware.  The snowblowers also include a one year warranty against any defects in workmanship without any additional charge to the customer.   Assume you purchase a lsnowblower from Hill's Hardware.  You leave the store with the snowblower and the voucher for $25 off a future purchase.   How many performance obligations does Hill's Hardware have for this transaction?     Question 24 options:   a)  1   b)  2   c)  3

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
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Hill's Hardware Store is offering an incentive to customers.  For every snowblowerr purchased at Hill's Hardware  the  customer will recieve a voucher for $25 off a future purchase.   Each sale of a snowblower also includes complimentary maintenance.  The  maintenance can be performed by other vendors but most customers choose to have the maintenance done by Hill's Hardware.  The snowblowers also include a one year warranty against any defects in workmanship without any additional charge to the customer.   Assume you purchase a lsnowblower from Hill's Hardware.  You leave the store with the snowblower and the voucher for $25 off a future purchase.  

How many performance obligations does Hill's Hardware have for this transaction?  

 

Question 24 options:

 

a) 

1

 

b) 

2

 

c) 

3

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