Question

just need the last part of the part answered

Assume the same facts as in P 6-2, except thats customers must pay $75 to purchase the extended warranty if they don't purchase it with the $50 coupon that was included in Protab Package. Creative estimates that 40% of customers will use the $50 coupon to purchase an extendes warranty

c. Prepare the journal entry to recognize revenue IUI IC Julo UFI Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package inclu 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 that 20% of the discount coupons will be utilized, • A coupon to purchase a one-year extended warranty for $50. Customers can buy the extended warranty for $50 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 $760. Required: 1. How many performance obligations are included in a Protab PackageExplain your answer. 2. List the performance obligations in the Protab Package in the following table, and complete it to allocate the transaction price of 100,000 Protab Packages to the performance obligations in the contract. Stand-alone Percentage of the sum of the stand-alone Allocation of total selling price of the selling prices of the performance obligations transaction price to the performance obligation: (to two decimal places): performance obligation: 3. Prepare a journal entry to record sales of 100,000 Protab Packages (ignore any sales of extended wa Assume the same facts as in P 6-2, except that customers must pay $75 to purchase the extended warrant don't purchase it with the $50 coupon that was included in the Protab Package. Creative estimates that tomers will use the $50 coupon to purchase an extended warranty. Complete the same requirements as ended warranty if they estimates that 40% of cus quirements as in P6-2

Answer 1

Last part :- 3

Sales revenue = 100000*50= $5000000

Extended warranty sold = 40%*100000*(75-50) = $1000000

Journal entry:- (ignore any sales of extended warranties)

Journal entries	Debit ($)	Credit ($)
Account receivable	5,000,000
To sales		5,000,000

Journal entry:- ( considering sales of extended warranties)

Journal entry	Debit ($)	Credit ($)
Account receivable	6,000,000
To sales		5,000,000
To unearned warranties revenue		1,000,000