Items Needed from P 6-2:

Assume the same facts as in P62, except that customers must pay $125 to purchase the extended warranty if they don't purchase it with the $50 coupon that Was included in the Protab Package. Creative estimates that 30% of customers will use the $50 coupon to purchase an extended warranty. Complete the same requirements as in P62. Creative Computing sells a tablet computer called the Protab. The $780 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 $200, a price that represents a 50% discount from the regular Probook price of $400. It is expected that 20% of the discount coupons will be utilized. - A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for $125 at other times. 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 $760. Required: 1. How many performance obligations are included in a Protab Package? Explain your answer. 2. List the performance obligations in the Protab Package in the following table, and complete it to allocate the transaction price of 100,000 Protab Packages to the performance obligations in the contract. 3. Prepare a journal entry to record sales of 100,000 Protab Packages (ignore any sales of extended warranties). Creative Computing sells a tablet computer called the Protab. The $900 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 $400, a price that represents a 50% discount from the regular Probook price of $800. It is expected that 40% of the discount coupons will be utilized. - A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for $50 at other times as well. 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 $800. Required: 1. How many performance obligations are included in a Protab Package? Explain your answer. 2. List the performance obligations in the Protab Package in the following table, and complete it to allocate the transaction price of 100,000 Protab Packages to the performance obligations in the contract. 3. Prepare a journal entry to record sales of 100,000 Protab Packages (ignore any sales of extended warranties)