Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please complete the blank spaces. Journal entry worksheet Record the sales of 100,000 Protab Packages. Note: Enter debits before credits. Transaction General Journal Debit Credit

image text in transcribedimage text in transcribed

Please complete the blank spaces.

image text in transcribedimage text in transcribedimage text in transcribed
Journal entry worksheet Record the sales of 100,000 Protab Packages. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journalCreative Computing sells a tablet computer called the Protab. The 5380 sales price ofa 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 $420. a price that represents a 30% discount from the regular Probook price of $600. It is expected that 20% ofthe discount coupons will be utilized. - A coupon to purchase a one-year extended warranty for $45. Customers can buy the extended warranty for $70 at other times if they do not use the $45 coupon. Creative estimates that 35% ofcustomers 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 $?50. Required: 1. 8r 2. Indicate 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 ajournal entry to record sales of'100,000 Protab Packages. Performance Percentage of Item Descrotion Obligation? Stand Alone Total Stand Alone Price Price Protab tablet Yes S 76,000,000 100.00% Limited 6-month warranty No Option to purchase a Probook Yes Option to purchase extended warranty Yes Total stand alone price 76,000,000 100.00% Percentage of Total Total Item Descrotion Stand Alone Transaction = Allocated Price Price Contract Price Protab tablet 100.00% Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting

Authors: Bernard J. Bieg, Judith A. Toland

2013 edition

113396253X, 978-1133962533

Students also viewed these Accounting questions