Hotshot Company sells personal computers with a two-year warranty. During 2018, the company sells 350 computers....

 

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Hotshot Company sells personal computers with a two-year warranty. During 2018, the company sells 350 computers. On the basis of past experience, the warranty costs are estimated to be $300 per computer. The actual warranty costs paid by Hotshot during 2019 were $80,000. Present general journal entries to record: a) the warranty expense on December 31, 2018 and b) the warranty payments made during 2019 (assume a single journal entry for actual warranty work completed as at June 30, 2019. Warranty work was paid fully in cash). Hotshot Company sells personal computers with a two-year warranty. During 2018, the company sells 350 computers. On the basis of past experience, the warranty costs are estimated to be $300 per computer. The actual warranty costs paid by Hotshot during 2019 were $80,000. Present general journal entries to record: a) the warranty expense on December 31, 2018 and b) the warranty payments made during 2019 (assume a single journal entry for actual warranty work completed as at June 30, 2019. Warranty work was paid fully in cash).

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a Warranty Expense on December 31 2018 On December 31 2018 we need to recognize the estimated warran... View the full answer