Creative Computing sells a tablet computer called the Protab. The $ sales price of a Protab Package includes the following:
One Protab computer.
A 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 ebook reader for $ a price that represents a discount from the regular Probook price of $ It is
expected that of the discount coupons will be utilized.
A coupon to purchase a oneyear extended warranty for $ Customers can buy the extended warranty for $ at other times if they do not use the
$ coupon. Creative estimates that 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 $
Required:
& Indicate below whether each item is a separate performance obligation and allocate the transaction price of Protab Packages to the
separate performance obligations in the contract.
Prepare a journal entry to record sales of Protab Packages.
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Req
Prepare a journal entry to record sales of Protab Packages.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.