Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 assoclated with defective products for up to slx months. A coupon to purchase a Creative Probook e-Dook reader for $250, a price that represents a 50% discount from the regular Probook price of $500, t 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 $60 at other tlmes as Well, 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. Indicated 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)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started