A company sells personal computers for $2,300 each. The price includes a two-year warranty. During the current
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A company sells personal computers for $2,300 each. The price includes a two-year warranty. During the current year, the company sells 400 computers. On the basis of the past experiences, the warranty costs are estimated to $230 per computer. The actual warranty costs (paid in cash) by the company during the current year were $65,000. a.) Prepare journal entries to record the estimated warranty expense. b.) Prepare journal entries to record the warranty repair costs during the current year. Thank you for you help!!
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
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