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.

Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 30,000 Protab Packages to the separate performance obligations in the contract. Item Descrption Performance Obligation? Stand Alone Price 78,000,000 Percentage of Total Stand Alone Price 95.00% Yes $ S No Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total stand alone price Yes Yes solo 5.00% IS IS 4,000,000 0 IS 80,000,000 100.00% Item Descrption Percentage of Total Stand Alone Price 95.00% Total Transaction Price 77.600.000 Allocated Contract Price S 73,720,000 IS Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty Total contract price 5.00% IS 77,600,000 IS 3.880,000 IS 77,600,000 Req 1 and 2 Req3 > Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare a journal entry to record sales of 80,000 Protab Packages. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Cash 77.600.000 Sales revenue Deferred revenue - coupons 73,720,000 X 3,880,000