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Creative Computing sells a tablet computer called the Protab. The $ 7 4 0 sales price of a Protab Package includes the following: One Protab
Creative Computing sells a tablet computer called the Protab. The $ sales price of a Protab Package includes the following: One Protab computer. A 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 ebook reader for $ a price that represents a discount from the regular Probook price of $ It is expected that of the discount coupons will be utilized. A coupon to purchase a oneyear extended warranty for $ Customers can buy the extended warranty for $ at other times if they do not use the $ coupon. Creative estimates that 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 $ Required: & Indicate below whether each item is a separate performance obligation and allocate the transaction price of Protab Packages to the separate performance obligations in the contract. Prepare a journal entry to record sales of Protab Packages.
Creative Computing sells a tablet computer called the Protab. The $ sales price of a Protab Package includes the following:
One Protab computer.
A 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 ebook reader for $ a price that represents a discount from the regular Probook price of $ It is expected that of the discount coupons will be utilized.
A coupon to purchase a oneyear extended warranty for $ Customers can buy the extended warranty for $ at other times if they do not use the $ coupon. Creative estimates that 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 $
Required:
& Indicate below whether each item is a separate performance obligation and allocate the transaction price of Protab Packages to the separate performance obligations in the contract.
Prepare a journal entry to record sales of Protab Packages.
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