Question: Creative Computing sells a tablet computer callled the Protab. The $890 sales price of a Protab Package includes the One Protab computer. A 6-month limited

 Creative Computing sells a tablet computer callled the Protab. The $890

Creative Computing sells a tablet computer callled the Protab. The $890 sales price of a Protab Package includes the 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 A coupon to purchase a Creative Probook e-book reader for $145, a price that represents a 50% discount from the regular Probook price of $290. It is expected that 25% of the discount coupons will be utilized. A coupon to purchase a one-year extended warranty for $65 Customers can buy the extended warranty for $65 at other times as well. Creative estimates that 35% 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 $870 1 Indicated below whether each item is a separate performance obligation and allocate the transaction price of 96,000 Protab Packages to the separate performance obligations in the contract 3 Prepare a journall entry to record sales of 96,000 Protab Packages (ignore any sales of extended warranties). (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field) ournal entry worksheet Record sales of%, Protab Packages

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!