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Problem 6-2 (Algo) Performance obligations; warranties; option [LO6-2, 6-4, 6-5] Creative Computing sells a tablet computer called the Protab. The $620 sales price of a
Problem 6-2 (Algo) Performance obligations; warranties; option [LO6-2, 6-4, 6-5] Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package Includes the following: - One Protab computer. - A slx-month IImited warranty. This warranty guarantees that Creatlve will cover any costs that arise due to repalrs or replacements assoclated with defectlve products for up to slx months. - A coupon to purchase a Creative Probook e-book reader for $125, a price that represents a 50% discount from the regular Probo price of $250. It is expected that 20% of the discount coupons will be utillized. - A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $40 at other times as well. Creatlive estimates that 45% of customers will purchase an extended warranty. - Creatlve does not sell the Protab without the IImited 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 $600. 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 120,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 120,000 Protab Packages (Ignore any sales of extended warrantles). Complete this question by entering your answers in the tabs below. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Journal entry worksheet Record the sales of 120,000 Protab Packages. Note: Enter debits before credits
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