Check 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 $225, a price that represents a 40% discount from the regular Probook price of $375. It is expected that 20% of the discount coupons will be utilized A coupon to purchase a one-year extended warranty for $70. Customers can buy the extended warranty for $100 at other times if they do not use the $70 coupon. 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. es Required: 1. & 2. Indicate 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Indicate 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. Performance Obligation? Yes No Yes Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Mati Percentage of Total Stand Alone Price 100.00% Stand Alone Price $ 72,000,000 0 Required: 1. & 2. Indicate 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Indicate 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. Item Descrption Performance Obligation? Yes Stand Alone Price $ 72,000,000 $ 0 Percentage of Total Stand Alone Price 100.00% 4 Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total stand alone price No Yes Yes $ 72,000,000 100.00% Percentage of Total Stand Alone Price 100.00% Total Transaction Price $ 74,000,000 Allocated Contract Price $ 74,000,000 Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price $ 74,000,000 Req3 > Required: 1. & 2. Indicate 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. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Prepare a journal entry to record sales of 100,000 Protab Packages. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet No Transaction 1 Credit 1 General Journal Cash Sales revenue Deferred revenue - coupons Dobit 74,000,000
