Question: accounting question Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following: One Protab computer.
accounting question

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 ony 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 $600, a price that represents a 25% discount from the regular Probook price of $800. It is expected that 20% of the discount coupons will be utilized. A coupon to purchase a one-year extended warranty for $60. Customers can buy the extended warranty for $85 at other times if they do not use the $60 coupon. Creative estimates that 45% of customers will purchase on 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. = Protab alone would sell for $760. Required: 1. & 2 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 90,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 90,000 Protob Packages. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 90,000 Protab Packages to the separate performance obligations in the contract. Performance Percentage of Item Descrotion Obligation? Stand Alone Total Stand Alone Price Price Protab tablet S 8a,400,000 36.27% Limited &-month warranty No 10,000 0.01% Option to purchase a Probook Yes 10,800,0006 13.62% Option to purchase extended warranty S 80,000 D. 10% Total stand alone price TE 79,290,000 100.00% Percentage of Total Total Item Descration Stand Alone Transaction Allocated Price Price Contract Price Protab tablet 16.27% 79,290,000 S 88,403,483 Limited 6-month warranty 0.01% 79,290,000 7,929 Option to purchase a Probook 13.62% 10,799,298 Option to purchase extended warranty 0. 10% 79,280,000 79.290 Total contract price 79,290,000
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