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Part a | ||||
There are two performance obligation: | ||||
Protab Computers | ||||
Option to purchase Extended warranty | ||||
Part b | ||||
Item | Perf Obligation | Stand alone Price | % of Total | |
Protab Computers | Yes | $ 76,000,000 | 95% | 760*100000 |
Limited 6 Month warranty | No | $ - | 0% | |
Option to purchase Probook | Yes | $ 4,000,000 | 5% | (200*100000)*20% |
Option to purchase Extended warranty | No | $ - | 0% | |
Total | $ 80,000,000 | |||
Item | % of Total | *Total Transaction Price | Allocated Contract Price | |
Protab Computers | 95% | $ 78,000,000 | $ 74,100,000 | |
Limited 6 Month warranty | 0% | $ 78,000,000 | $ - | |
Option to purchase Probook | 5% | $ 78,000,000 | $ 3,900,000 | |
Option to purchase Extended warranty | 0% | $ 78,000,000 | $ - | |
Total | $ 78,000,000 | |||
Part c | ||||
Journal Entry: | ||||
Account | Debit | Credit | ||
Cash | $ 78,000,000 | |||
Sales Revenue | $ 74,100,000 | |||
Deferred Revenue-Discount Coupon | $ 3,900,000 | |||
Creative Computing sells a tablet computer called the Protab. They expect to sell 100,000 Protab Packages...
Creative Computing sells a tablet computer called the Protab. The $780 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 $200, a price that represents a 50% discount from the regular Probook price of $400. It is expected...
Creative Computing sells a tablet computer called the Protab. The $785 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 $425, a price that represents a 50% discount from the regular Probook price of $850. It is expected...
Creative Computing sells a tablet computer called the Protab. The $860 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 $140, a price that represents a 50% discount from the regular Probook price of $280. It is expected...
Creative Computing sells a tablet computer called the Protab. The $970 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 $375, a price that represents a 40% discount from the regular Probook price of $625. It is expected...
Creative Computing sells a tablet computer called the Protab. The $740 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 $450, a price that represents a 40% discount from the regular Probook price of $750. It is expected...
Creative Computing sells a tablet computer called the Protab. The $875 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 $225, a price that represents a 50% discount from the regular Probook price of $450....
Creative Computing sells a tablet computer called the Protab. The $970 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 $375, a price that represents a 40% discount from the regular Probook price of $625....
Creative Computing sells a tablet computer called the Protab. The $860 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 $675, a price that represents a 25% discount from the regular Probook price of $900....
Creative Computing sells a tablet computer called the Protab. The $740 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...
Creative Computing sells a tablet computer called the Protab. The $875 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 $180, a price that represents a 50% discount from the regular Probook price of $360....