Creative Computing sells a tablet computer called the Protab. The $780 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 $200, a price that represents a 50% discount from the regular Probook price of $400. It is expected that 20% of the discount coupons will be utilized. A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for $75 at other times if they do not use the $50 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 $760 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 Reg 3 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. a Stand Alone Price $ 76,000,000 Percentage of Total Stand Alone Price 94 88% Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Performance Obligation? Yes No Yes Vos $ 4,000,000 100.000 499% 0.12% 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 Protabalone would sell for $760 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. Reg 1 and 2 Reg 3 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 Stand Alone Price Percentage of Total Stand Alone Price 94 88% $ 76,000,000 No Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total stand alone price Yes Yes $ $ $ 4,000,000 100,000 80 100.000 4.99% 0.12% 99.99% Percentage of Total Stand Alone Price Total Transaction Price $ 7,800,000 Allocated Contract Price $ 7.400,640 94 88% $ Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price 4.99% 0.12% $ $ 7.800.000) = 7.800.000 389 220 9 360 $ $ 7.799 220 Reg1 and 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. Red 1 and 2 Reg 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.) SH View transaction list View journal entry worksheet Credit General Journal Debit 78.000.000 No Transaction 1 1 Cash Sales revenue Deferred revenue - coupons Deferred revenue - extended warranties 73. 185 185 3.851 852 962 963 Ren ( Req 1 and 2
