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Chapter Problems 1 Problem 6-2 (Algo) Performance obligations; warranties; option (LO6-2, 6-4, 6-5) 5 palets Creative Computing sells a tablet computer called the Protab. The $780 sales price of a protab Package includes the following a Print 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 excected that 20% of the discount coupons will be utilized A coupon to purchase a one-year extended warranty for $65. Customers can buy the extended warranty for $65 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 $760. All Protab sales are made in cash. Required: 1. & 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 95,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 95,000 Protob Packages (ignore any sales of extended warranties) Complete this question by entering your answers in the tabs below. Reg 1 and Req3 Prepare a journal entry to record sales of 95,000 Protab Packages (ignore any sales of extended Warranties). If no entry is required for transaction/event, select "No journal entry required in the first account field.) View transaction list 1 1. & 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 95,000 Prota Packages to the separate performance obligations in the contract 3. Prepare a journal entry to record sales of 95,000 Protab Packages (ignore any sales of extended warranties). Complete this question by entering your answers in the tabs below. Red 1 and 2 Reg 3 OK Indicated below whether each item is a separate performance obligation and allocate the transaction price of 95,000 Protab Packages to the separate performance obligations in the contract. Performance Obligation? Stand Alone Price Percentage of Total Stand Alone Price 0 nces Item Description Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total stand alone price 0 0 $ 0 0 0% tom Description Porcentage of Total Stand Alone Price Total Transaction Pries Allocated Contract Price Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price S 0 Req3 > oved - 1 Prepare a journal entry to record sales of 95,000 Protab Packages (ignore any sales of extended warranties). Ctr no entry is required for a transaction/event, select "No journal entry required in the first account field.) soints View transaction list Journal entry worksheet eller 1 b Print Record the sales of 95,000 Protab Packages References Note: Enter debits before credits General Journal Transaction 1 Dab Credit Record entry Clear entry View general Journal Reg 1 and 2 Rag Chapter Problems 1 Problem 6-2 (Algo) Performance obligations; warranties; option (LO6-2, 6-4, 6-5) 5 palets Creative Computing sells a tablet computer called the Protab. The $780 sales price of a protab Package includes the following a Print 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 excected that 20% of the discount coupons will be utilized A coupon to purchase a one-year extended warranty for $65. Customers can buy the extended warranty for $65 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 $760. All Protab sales are made in cash. Required: 1. & 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 95,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 95,000 Protob Packages (ignore any sales of extended warranties) Complete this question by entering your answers in the tabs below. Reg 1 and Req3 Prepare a journal entry to record sales of 95,000 Protab Packages (ignore any sales of extended Warranties). If no entry is required for transaction/event, select "No journal entry required in the first account field.) View transaction list 1 1. & 2. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 95,000 Prota Packages to the separate performance obligations in the contract 3. Prepare a journal entry to record sales of 95,000 Protab Packages (ignore any sales of extended warranties). Complete this question by entering your answers in the tabs below. Red 1 and 2 Reg 3 OK Indicated below whether each item is a separate performance obligation and allocate the transaction price of 95,000 Protab Packages to the separate performance obligations in the contract. Performance Obligation? Stand Alone Price Percentage of Total Stand Alone Price 0 nces Item Description Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total stand alone price 0 0 $ 0 0 0% tom Description Porcentage of Total Stand Alone Price Total Transaction Pries Allocated Contract Price Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price S 0 Req3 > oved - 1 Prepare a journal entry to record sales of 95,000 Protab Packages (ignore any sales of extended warranties). Ctr no entry is required for a transaction/event, select "No journal entry required in the first account field.) soints View transaction list Journal entry worksheet eller 1 b Print Record the sales of 95,000 Protab Packages References Note: Enter debits before credits General Journal Transaction 1 Dab Credit Record entry Clear entry View general Journal Reg 1 and 2 Rag