Question

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

Answer 1

Answer:

There are two obligation.

We would have a revenue of $760 dollar  x 100,000

and a deferred discount obligation for the difference

sales revenue 76,000,000

deferred discount 2,000,000

Explanation:

There are two obligation.

The computer and the discouint voucher.

The option to purchase and liabilities will not be considered obligation to perform as the customer can chose not to use them.

Now, we can determnate the cost for each one as follows:

Computer                                 780 weight (780/1740) 45%

Probook discount vouches   200 weight (200/1740) 11%

Option to puchase a Probook 760 weight (760/1740) 44%

Total stand-alone price:    1740  

Now we multiply each one by the offe price to recognzie the sales revenue

780 x 45% = 350

780 x 11%  =    89

780 x 44% =  350

We now multiply each one by 100,000