Creative Computing sells a tablet computer called the Protab. The $920 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 $400, a price that represents a 50% discount from the regular Probook price of $800. It is expected that 25% of the discount coupons will be utilized.
	A coupon to purchase a one-year extended warranty for $45. Customers can buy the extended warranty for $45 at other times 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 $900.

Customers must pay $80 to purchase the extended warranty if they dont purchase it with the $45 coupon that was included in the Protab Package. Creative estimates that 30% of customers will use the $45 coupon to purchase an extended warranty.

Required:
1. & 2.	Indicated below whether each item is a separate performance obligation and allocate the transaction price of 90,000 Protab Packages to the separate performance obligations in the contract.

Answer is complete but not entirely correct. Percentage of Total Stand Alone Price Performance Stand Alone Item Descrption Obligation? Price Protab tablet 81,000,000 Yes 90.00% Limited 6-month warranty No 0 Option to purchase a Probook Option to purchase extended warranty Total stand alone price Yes 9,000,000 10.00% 0.00% Yes 90,000,000 100.00% Percentage of Total Total Transaction Allocated X Item Descrption Stand Alone Contract Price Price Price Protab tablet $ 74,520,000 90.00% 82,800,000 X Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price 82,800,000 8,280,000 10.00% X = 82,800,000 $ 3. Prepare a journal entry to record sales of 90,000 Protab Packages (ignore any sales of extended warranties). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Transaction General Journal Debit Credit 82,800,000 1 Cash 1 Sales revenue 74,520,000 Deferred revenue discount option 8,280,000X