N3. 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 replacementsassociated 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 Probookprice of $750. It is expected that 20% of the discount coupons will be utilized.• A coupon to purchase a one-year extended warranty for $65. Customers can buy the extended warranty for $90 at other times ifthey do not use the $65 coupon. 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 anextended warranty, but estimates that If It did so, a Protab alone would sell for $720.Required:1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 100,000 ProtabPackages to the separate performance obligations in the contract.3. Prepare a journal entry to record sales of 100,000 Protab Packages.Complete this question by entering your answers in the tabs below.Req 1 and 2Req 3Indicate below whether each item is a separate performance obligation and allocate the transaction price of 100,000 ProtabPackages to the separate performance obligations in the contract.Item DescriptionProtab tabletLimited 6-month warrantyOption to purchase a ProbookOption to purchase extended warrantyTotal stand-alone priceItem DescriptionProtab tabletLimited 6-month warrantyOption to purchase a ProbookOption to purchase extended warrantyTotal contract pricePerformanceObligation?Percentage ofTotal Stand-Alone Price< Req 1 and 2Stand-Alone PriceTotal TransactionPriceReq 3 >Percentage of TotalStand-Alone PriceAllocated ContractPrice Req 1 and 2Req 3Prepare a journal entry to record sales of 100,000 Protab Packages.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheetRecord the sales of 100,000 Protab Packages.Note: Enter debits before credits.Transaction1Record entryGeneral JournalClear entryDebitCreditView general journal

Performance obligation can be defined as the promise made by a firm to provide goods or services to…

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 Probod price of $750. It is expected that 20% of the discount coupons will be utilized. • A coupon to purchase a one-year extended warranty for $65. Customers can buy the extended warranty for $90 at other times if they do not use the $65 coupon. 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 $720.