Problem $6-3($Algo$)$ Performance obligations; warranties; option $[$LO$6-2,6-4,6-5]$

Creative Computing sells a tablet computer called the Protab. The $\backslash (\backslash$$ $860\backslash )$ 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 assoclated with defective products for up to slx months.

$-$ A coupon to purchase a Creative Probook e$-$book reader for $\backslash (\backslash$$ $675\backslash ),$ a price that represents a $\backslash (25\backslash \%\backslash )$ discount from the regular Probook price of $\backslash (\backslash$$ $900\backslash ).$ It is expected that $\backslash (25\backslash \%\backslash )$ of the discount coupons will be utilized.

$-$ A coupon to purchase a one$-$year extended warranty for $\backslash (\backslash$$ $50\backslash ).$ Customers can buy the extended warranty for $\backslash (\backslash$$ $80\backslash )$ at other times if they do not use the $\backslash (\backslash$$ $50\backslash )$ coupon. Creative estimates that $\backslash (40\backslash \%\backslash )$ 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 $\backslash (\backslash$$ $840\backslash ).$

Required:

$1.\backslash$& $2.$ Indicate 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 journal entry to record sales of $96,000$ Protab Packages.

Complete this question by entering your answers in the tabs below.

Indicate 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.