Creative Computing sells a tablet computer called the Protab. The $875 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 associated with defective products for up to six months.
• A coupon to purchase a Creative Probook e-book reader for $420, a price that represents a 30% discount from the regular Probook price of $600. It is expected that 25% of the discount coupons will be utilized.
• A coupon to purchase a one-year extended warranty for $70. Customers can buy the extended warranty for $95 at other times if they do not use the $70 coupon. Creative estimates that 45% 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 $855.

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 Protab Packages (ignore any sales of extended warranties).

Req 1 and 2 Req 3 Indicate below whether each item is a separate performance obligation and allocate the transaction Packages to the separate performance obligations in the contract Percentage of Total Stand Alone Price Performance Item Descrption Obligation? Stand Alone Price Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Yes 76,950,000 98.70% $ No Yes 0.00% Yes $ 1,012,500 Total stand alone price 77,962,500 98.70% Percentage of Total Stand Alone Price Total Transaction Price Allocated Contract Price Item Descrption Protab tablet 98.70% 63,803,250 62,973,808 Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price 62,973,808 Req 1 and 2 Req 3 Prepare a journal entry to record sales of 90,000 Protab Packages (ignore any sales of extended warranties). a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Cred Cash 1 63,803,250 Sales revenue 63,80 Deferred revenue discount option Req 1 and 2 Req 3