Hi I need the answer to this by tonight (Friday, April 22, 2016 before Midnight PST)

Problem 5-2 Performance obligations; warranties; option [LO5-2, 5-4, 5-5]

Creative Computing sells a tablet computer called the Protab. 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 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 35% 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.

Required:
1. & 2.	Indicated below whether each item is a separate performance obligation and allocate the transaction price of 100,000 Protab Packages to the separate performance obligations in the contract.

3.	Prepare a journal entry to record sales of 100,000 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.)

Attached is the complete file!

4/22/2016 Week Three Homework Melissa Aguirre NU Financial Accounting: ACC610M April 2016 Week Three Homework 1. instructions | help value: 12.50 points Problem 5-2 Performance obligations; warranties; option [LO5-2, 5-4, 5-5] Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following: One Protab computer. A 6month 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 $200, a price that represents a 50% discount from the regular Probook price of $400. It is expected that 20% of the discount coupons will be utilized. A coupon to purchase a oneyear extended warranty for $45. Customers can buy the extended warranty for $45 at other times as well. Creative estimates that 35% 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. Required: 1. & 2.Indicated below whether each item is a separate performance obligation and allocate the transaction price of 100,000 Protab Packages to the separate performance obligations in the contract. Performance Percentage of Total Item Description Stand Alone Price Obligation? Stand Alone Price Protab computers Yes $ 780 45% Limited 6month warranty No Probook discount vouchers Yes $ 200 11% Option to purchase a Probook No $ 760 44% $ 1,740 100% Total stand alone price Item Description Protab computers Limited 6month warranty Percentage of Total Stand Alone Price 45% $ Total Transaction = Price Allocated Contract Price 780 = $ 350 Probook discount vouchers 11% $ 780 = $ 90 Option to purchase a Probook 44% $ 780 = $ 341 $ 781 Total contract price 3. Prepare a journal entry to record sales of 100,000 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.) http://ezto.mheducation.com/hm.tpx 1/2 4/22/2016 Week Three Homework view transaction list Transaction 1 view general journal General Journal Cash Debit Credit 78,000,000 Deferred revenue discount option Sales revenue 2,000,000 76,000,000 References eBook & Resources Worksheet Difficulty: 3 Hard Learning Objective: 0504 Allocate a contract's transaction price to multiple performance obligations. Problem 52 Performance obligations warranties option [LO52, 54, 55] Learning Objective: 0502 Explain when it is appropriate to recognize revenue at a single point in time. Learning Objective: 0505 Determine whether a contract exists, and whether some frequently encountered features of contracts qualify as performance obligations. Check my work 2016 McGraw-Hill Education. All rights reserved. http://ezto.mheducation.com/hm.tpx 2/2