Fulton Electronics sells televisions and other electronics. All the electronics come with a default one - year
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Fulton Electronics sells televisions and other electronics. All the electronics come with a default oneyear warranty against defects. Warranty estimates are recorded every month. Fulton estimates that warranty repairs or replacements areof the sales price. Customers are also able to purchase a twoyear extended warranty. The warranty revenue is spread evenly over the twoyear period. During Septemberthe following transactions occurred. The company uses the perpetual inventory system and operates in a state that has a sales tax rate of
Sales tax amounts on purchases are added to the value of the item purchased. prepare a journal entry for the above transactions. Are liabilities reported as current or longterm on the balance sheet? Explain where each
belongs
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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