In which of the following is the option described not a performance obligation?
A) Customers accumulate points for every dollar spent at Madeline's Book Store. The points can be redeemed for books once certain levels are met.
B) Customers can get 5% cash back for every $100 spent on eco-friendly products.
C) Customers can "buy two, get one free" at a menswear store.
D) Upon purchase of any name-brand TV, customers can purchase a 5-year extended warranty at a 25% discount.

Question

Quizplus · Accepted Answer

5% cash back is an adjustment of list price, and therefore must be considered when calculating the transaction price. It is not a performance obligation.

In Which of the Following Is the Option Described Not