Performance obligation: Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract. Warranty: Warranty is the practice of normal business for quality assurance. It is obligation of the seller to make repairs or replace the product if there is any defect or unsatisfactory in future. To determine: The number of performance obligations exist in the implied contract for the purchase of a vacuum cleaner.

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Chapter 6, Problem 6.9BE

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Warranty:

Warranty is the practice of normal business for quality assurance. It is obligation of the seller to make repairs or replace the product if there is any defect or unsatisfactory in future.

To determine: The number of performance obligations exist in the implied contract for the purchase of a vacuum cleaner.

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