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Creative Computing sells a tablet computer called the Protab. They expect to sell 100,000 Protab Packages during the year. The $780 sales price of a
Creative Computing sells a tablet computer called the Protab. They expect to sell 100,000 Protab Packages during the year. 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 coupones will be utilized A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for $50 at other times as well. 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 How many performance obligations are included in a Protab Package? Explain your answer Allocate the transaction price of 100,000 Protab Packages to each performance obligation. Provide supporting calculations and/or explanation:s Prepare the journal entry to record the sale of 100,000 Protab Packages (ignore any sales of extended warranties) c
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