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

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 $600, a price that represents a 25% discount from the regular Probook price of $800. It is expected that 20% of the discount coupons will be utilized.

-A coupon to purchase a one-year extended warranty for $60. Customers can buy the extended warranty for $85 at other times if they do not use the $60 coupon. Creative estimates that 45% 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. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 90,000 Protab Packages to the separate performance obligations in the contract.

3. Prepare a Journal entry to record sales of 90,000 Protab Packages (ignore any sales of extended warranties).