Problem $6-2($Algo$)$ Performance obligations; warranties; option $[$LO$6-2,6-4,6-5]$ Creative Computing sells a tablet computer called the Protab. The $$830$ sales price of a Protab Package includes the following: One Protab computer. A six$-$month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. A coupon to purchase a Creative Probook e$-$book reader for $$360,$ a price that represents a $50\%$ discount from the regular Probook price of $$720.$ It is expected that $25\%$ of the discount coupons will be utilized. A coupon to purchase a one$-$year extended warranty for $$55.$ Customers can buy the extended warranty for $$55$ at other times as well. Creative estimates that $40\%$ of customers will purchase an extended warranty. Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but estimates that if it did so$,$ a Protab alone would sell for $$810.$ All Protab sales are made in cash. 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.

Problem $6-2($Algo$)$ Performance obligations; warranties; option $[$LO$6-2,6-4,6-5]$

Creative Computing sells a tablet computer called the Protab. The $$740$ sales price of a Protab Package includes the following:

One Protab computer.

A six$-$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 $$150,$ a price that represents a $50\%$ discount from the regular Probook price of $$300.$ It is expected that $20\%$ of the discount coupons will be utilized.

A coupon to purchase a one$-$year extended warranty for $$70.$ Customers can buy the extended warranty for $$70$ at other times as well. Creative estimates that $40\%$ of customers will purchase an extended warranty.

Creative does not sell th otab without the limited warranty, option to purchase a Probook, and the option to purchase an extended war anty, but estimates that if it did so$,$ a Protab alone would sell for $$720.$

All Protab sales are made in cash.

Required:

& $2.$ Indicated below whether each item is a separate performance obligation and allocate the transaction price of $100,000$ Protab Packages to the separate performance obligations in the contract.

Prepare a journal entry to record sales of $100,000$ 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 $100,000$ Protab Packages to the separate performance obligations in the contract.

Item Description

Performance

Obligation?

Stand$-$Alone Price

Percentage of Total

Stand$-$Alone Price