Creative Computing sells a tablet computer called the Protab. The $740 sales price of a Protab Package includes the foll

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Creative Computing Sells A Tablet Computer Called The Protab The 740 Sales Price Of A Protab Package Includes The Foll 1 (45.12 KiB) Viewed 9 times

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Creative Computing sells a tablet computer called the Protab. The $740 sales price of a Protab Package includes the following: . One Protab computer. - A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $400, a price that represents a 50% discount from the regular Probook price of $800. It is expected that 20% of the discount coupons will be utilized. • A coupon to purchase a one-year extended warranty for $65. Customers can buy the extended warranty for $65 at other times as well. Creative estimates that 40% of customers will purchase an extended warranty. • Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but estimates that if it did so, a Protab alone would sell for $720. Required: 1. & 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 100,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 100,000 Protab Packages (ignore any sales of extended warranties). Complete this question by entering your answers in the tabs below.

Packages to the separate performance obligations in the contract. mance obligation and allocate the transaction price of 100,C Item Description Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total stand alone price Item Description Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price Performance Obligation? Yes No Yes No Percentage of Total Stand Alone Price Stand Alone Price $ Total Transaction Price 0 Percentage of Total Stand Alone Price Allocated Contract Req 3 > Price 0 0% 0 0 0

Record the sales of 100,000 Protab Packages. Note: Enter debits before credits. Transaction Record entry General Journal Clear entry Debit Credit View general Journal