Question: PLEASE HELP, I have a final tomorrow and do not understand this concept Chapter 5 Coupon, warranty included in contract (2 pts.) Creative Computing sells

 PLEASE HELP, I have a final tomorrow and do not understand

this concept Chapter 5 Coupon, warranty included in contract (2 pts.) Creative

PLEASE HELP, I have a final tomorrow and do not understand this concept

Chapter 5 Coupon, warranty included in contract (2 pts.) Creative Computing sells a tablet computer called the Protab. The $920 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 25% 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 $60 at other times as well, Creative estimates that 35% of customers will purchase an extended warranty. 2 Skipped Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase arn extended warranty, but estimates that If It did so, a Protab alone would sell for $900. eBook 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). Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 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 Performance Item Description Obligation? Stand Alone Price Percen Stand Alone Price Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warran Total stand alone price 0% Pe Total Transaction All Allocated Contract Price Item Description Total Standx Alone Price Price Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warran Total contract price 0 Req 1 and 2 Req3 > Chapter 5 Coupon, warranty included in contract (2 pts.) Creative Computing sells a tablet computer called the Protab. The $920 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 25% 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 $60 at other times as well, Creative estimates that 35% of customers will purchase an extended warranty. 2 Skipped Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase arn extended warranty, but estimates that If It did so, a Protab alone would sell for $900. eBook 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). Complete this question by entering your answers in the tabs below Req 1 and 2 Req 3 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 Performance Item Description Obligation? Stand Alone Price Percen Stand Alone Price Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warran Total stand alone price 0% Pe Total Transaction All Allocated Contract Price Item Description Total Standx Alone Price Price Protab computers Limited 6-month warranty Option to purchase a Probook Option to purchase extended warran Total contract price 0 Req 1 and 2 Req3 >

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