Question: creative computer sells a tablet computer called the protab. the $780 sales price of protab package includes the following: *one protab computer * a 6-month
creative computer sells a tablet computer called the protab. the $780 sales price of protab package includes the following:
*one protab computer
* a 6-month limited warrenty. this warrenty guarentees that creative will cover any costs that arise due torepairs or replacements assoiciated with defective products for up to six months.
* a coupon to purchase s creative prbook e-book reader for $200 a price that represents a 50% discount from the regular probook price of $400 it is expected that 20% of the discount coupons will be utilized.
* a coupon to purchase a one year extended warrenty for 50$ customers can buy the extended warrenty for 50 at other times as well creative estimets that 40% of customers will purchase an extended warrenty
*creative does not sell the protab without the limited warrenty optuion to purchase a probook and theoption to purchase an extended warrenty, but estimates that if it did so a protab alone would sell for $760
Required
1. how many proformance obligations are included in a protab package? explain your answer
2. list the proformance obligations in the protab package in the ollowing table, complete it to allocate the transaction price 100,000 protab packages to the preformance obligations in the contract.
preformance obligation: stand-alone selling price of the preformance obligation % of the sum of the stand-alone selling prices of the preformance obligations (to the decimal places) allocation of total transaction price to the preformance obligation
3. prepare a journal entry to record sales of 100,000 protab packages (ignore any sales of extended warrentys)
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