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A college student walks into a Coffee House on campus and orders a large cup of black coffee and a croissant for $7. The stand alone prices are $5 for coffee and $2 for the croissant. The coffee shop is out of croissants so they give the student a coupon to get 2 croissants at a later date. The coffee shop sells coupons for two croissants for $3.50 each. The coupons are good for 3 months. What amount of revenue is recognized when the coffee is delivered? Select one: a. $4.50 b. $4.12 c. $5 d. $7

A college student walks into a Coffee House on campus and orders a large cup of black coffee and a croissant for $7. The stand alone prices are $5 for coffee and $2 for the croissant. The coffee shop is out of croissants so they give the student a coupon to get 2 croissants at a later date. The coffee shop sells coupons for two croissants for $3.50 each. The coupons are good for 3 months. What amount of revenue is recognized when the coffee is delivered? Select one: a. $4.50 b. $4.12 c. $5 d. $7

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A college student walks into a Coffee House on campus and orders a large cup of black coffee and a croissant for $7. The stand alone prices are $5 for coffee and $2 for the croissant.  The coffee shop is out of croissants so they give the student a coupon to get 2 croissants at a later date.  The coffee shop sells coupons for two croissants for $3.50 each.  The coupons are good for 3 months.  What amount of revenue is recognized when the coffee is delivered?

Select one:
a. $4.50
b. $4.12
c. $5
d. $7
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