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Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $330. Instructions Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2020. Actual warranty costs (inventory) incurred in 2020 were $17,000.

Respuesta :

oreoluwa2001ng

Answer:

Explanation: Journal Entries for the sale.

DR: Bank/Cash. $800,000

CR: Sales. $783,000

CR: Warranty on sales. $17,000

Being sales of 200 color printers at $4,000 per piece.

DR: warranty expense. $330

CR: Warrant on sales. $330

Being actual expense incurred on warranty for year 2020

zainsubhani

Answer:

Amount                                                          Debit                      Credit

Cash                                                               $800,000

 Sales Revenue                                                                            $800,000

Warranty Expense                                         $17,000

    Cash                                                                                          $17,000

Warranty expense                                         $49,000

    Warranty liability                                                                      $49,000

Explanation:

Given:

Price For each copier=$4,000

Number of copiers sold=200

Maintenance cost on each copier during warranty=$330

Actual Warranty cost=$17,000

Required:

Prepare entries.

Solution:

Amount                                                          Debit                    Credit

Cash ($4,000*200)                                       $800,000

 Sales Revenue ($4,000*200)                                                    $800,000

Warranty Expense                                         $17,000

    Cash                                                                                              $17,000

Warranty expense[($330*200)-17,000]       $49,000

    Warranty liability                                                                         $49,000