Creative Computing sells a tablet computer called the Protab The $970 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 $375, a price that represents a 40 discount from the regular Probook price of $625 It is expected that 20 of the discount coupons will be utilized A coupon to purchase a one year extended warranty for $60 Customers can buy the extended warranty for $95 at other times if they do not use the $60 coupon Creative estimates that 30 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 $950 Required 1 2 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 80,000 Protab Packages to the separate performance obligations in the contract 3 Prepare a journal entry to record sales of 80,000 Protab Packages (ignore any sales of extended warranties)

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Creative Computing sells a tablet computer called the Protab. The $970 sales price of a Protab Package includes the following: One Protab computer. A 6-month

Creative Computing sells a tablet computer called the Protab. The $970 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 $375, a price that represents a 40% discount from the regular Probook price of $625. It is expected that 20% of the discount coupons will be utilized.
A coupon to purchase a one-year extended warranty for $60. Customers can buy the extended warranty for $95 at other times if they do not use the $60 coupon. Creative estimates that 30% 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 $950.

Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 80,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 80,000 Protab Packages (ignore any sales of extended warranties).