Creative Computing sells a tablet computer called the Protab. The $830 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 $360, a price that represents a 50% discount from the regular Probook price of $720. It is expected that 25% of the discount coupons will be utilized.
• A coupon to purchase a one-year extended warranty for $55. Customers can buy the extended warranty for $55 at other times as well. Creative estimates that 40% 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 $810.

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 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).

Indicated 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.

part 1 & 2

Item Description	Performance Obligation?		Stand Alone Price		Percentage of Total Stand Alone Price
Protab computers	Yes				0
Limited 6-month warranty	No				0
Option to purchase a Probook	Yes				0
Option to purchase extended warranty	Yes				0
Total stand alone price			$0		0%
Item Description	Percentage of Total Stand Alone Price		Total Transaction Price	=	Allocated Contract Price
Protab computers
Limited 6-month warranty
Option to purchase a Probook
Option to purchase extended warranty
Total contract price					$0

Prepare a journal entry to record sales of 90,000 Protab Packages (ignore any sales of extended warranties). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

part 3

No	Transaction	General Journal	Debit	Credit
1	1	Accounts receivable