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1 Creative Computing sells a tablet computer called the Protab. The $ 6 2 0 sales price of a Protab Package includes the following: One

1
Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following:
One Protab computer.
A six-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 $125, a price that represents a 50% discount from the regular Probook price of $250. It is expected that 20% of the discount coupons will be utilized.
A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $40 at other times as well. Creative estimates that 45% 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 $600.
All Protab sales are made in cash.
Required:
& 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract.
Prepare a journal entry to record sales of 120,000 Protab Packages (ignore any sales of extended warranties).
Complete this question by entering your answerers in the tabs below.
Req 1 and 2
Req3
Indicated below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract.
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