Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ttur htureet fer the work you hav completed so far. It does not Indicate completion Return to que Problem 5-3 Performance obligations; warranties; option [LO5-2,5-4,5-5

image text in transcribed
image text in transcribed
image text in transcribed
ttur htureet fer the work you hav completed so far. It does not Indicate completion Return to que Problem 5-3 Performance obligations; warranties; option [LO5-2,5-4,5-5 Creative Computing sells a tablet computer called the Protab. The $970 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 A coupon to purchase a Creative Probook e-book reader for S375, a price that represents a 40% discount from the regular Proto A coupon to purchase a one-year extended warranty for $60. Customers can buy the extended warranty for $95 at other times if associated with defective products for up to six months. price of S625. It is expected that 20% of the discount coupons wil be utilized. they do not use the $60 coupon. Creative estimates th t 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 $950 Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 80,000 Protab Packages to the separate performance obligations in the contract 3. Prepare a journal entry to record sales of 80,000 Protab Packages (gnore any sales of extended warranties). Answer is not complete Complete this question by entering your answers in the tabs below Req 1 and 2 Reg 3 3 5 W E

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

Students also viewed these Accounting questions