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 associated with defective products for up to six months.

A coupon to purchase a Creative Probook e$-$book reader for $$375,$ a price that represents a $40\%$ discount from the regular Probook price of $$625.$ It is expected that $20\%$ of the discount coupons will be utilized.

A coupon to purchase a one$-$year extended warranty for $$60.$ Customers can buy the extended warranty for $$95$ at other times if they do not use the $$60$ coupon. Creative estimates that $30\%$ 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. Journal entry worksheet

$1$

Record the sales of $80,000$ Protab Packages.

Note: Enter debits before credits.

$\backslash$begin$\{$tabular$\}\{|$c$|$l$|$l$|$l$|\}$

$\backslash$hline Transaction & General Journal & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Req $1$ and $2$

Indicate below whether each item is a separate performance obligation and allocate the transaction price of Packages to the separate performance obligations in the contract.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Item Descrption & Performance Obligation? & & Stand Alone Price & & Percentage of Total Stand Alone Price $\backslash \backslash$

$\backslash$hline Protab tablet & & & & & $0\backslash \backslash$

$\backslash$hline Limited $6-$month warranty & & & & & $0\backslash \backslash$

$\backslash$hline Option to purchase a Probook & & & & & $0\backslash \backslash$

$\backslash$hline Option to purchase extended warranty & & & & & $0\backslash \backslash$

$\backslash$hline Total stand alone price & & & $\backslash$$ $0$ & & $0\mathrm{.}00\backslash \%\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline Item Descrption & Percentage of Total Stand Alone Price & $*$ & Total Transaction Price & $\backslash (=\backslash )$ & Allocated Contract Price $\backslash \backslash$

$\backslash$hline Protab tablet & & & & & $\backslash \backslash$

$\backslash$hline Limited $6-$month warranty & & & & & $\backslash \backslash$

$\backslash$hline Option to purchase a Probook & & & & & $\backslash \backslash$

$\backslash$hline Option to purchase extended warranty & & & & & $\backslash \backslash$

$\backslash$hline Total contract price & & & & & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Journal entry worksheet

$1$

Record the sales of $80,000$ Protab Packages.

Note: Enter debits before credits.

$\backslash$begin$\{$tabular$\}\{|$c$|$l$|$l$|$l$|\}$

$\backslash$hline Transaction & General Journal & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$