ELC Inc. sells all types of electronics with a one-year warranty for product assurance on all products

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ELC Inc. sells all types of electronics with a one-year warranty for product assurance on all products sold. On 26 February, a customer came into the store and purchased a television for $ 1,250. The company estimates, based on past experience, that warranty costs will be $ 150 for this product.

Required:
Prepare the journal entries that ELC would use to record this transaction.
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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