Prepare a journal entry to record sales for protab packages

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Reference no: EM132475707

Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following.

Point 1: One Protab computer.

Point 2: A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or repiacements associated with defective products for up to six months.

Point 3: A coupon to purchase a Creative Probook e-book reader for $420. a price that represents a 30% discount from the regular Probook price of $600. It is expected that 20% of the discount coupons will be utilized

Point 4: A coupon to purchase a one-year extended warranty for 545. Customers can buy the extended warranty for $70 at other times if they do not use the $45 coupon. Creative estimates that 35% of customers will purchase an extended warranty.

Point 5: 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:

Question 1: Indicate 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 tne contract

Question 2: Prepare a Journal entry to record sales of 100.000 Protab Packages.

Reference no: EM132475707

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