Answer:
the journal entry to record the sale of 100,000 Protab packages:
Dr Cash 97,000,000
Cr Sales revenue 91,035,000
Cr Deferred revenue - discount option 4,792,000
Cr Deferred revenue - extended warranty 1,173,000
Explanation:
some information was missing:
- Each Protab package costs $970
- stand alone selling price of a Protab is $950
stand alone price of Probook coupon = ($625 x 40%) x 20% = $50
stand alone price of extended warranty coupon = ($85 - $50) x 35% = $12.25
item stand alone prices % of package price allocation of
<u> transaction $</u>
Protab $950 93.85% $910.35
Probook coupon $50 4.94% $47.92
Ext. warranty coup. $12.25 1.21% $11.73
total $1,012.25 100% $970.00
