Incaviglia Company sold 400 copy-making machines in 2014 for $3,000 apiece, together with a one-year warranty. Maintenance
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Instructions
(a) Prepare entries to record the sale of the copiers and the related warranty costs, assuming that the accrual method is used. Actual warranty costs incurred in 2014 were $24,000.
(b) On the basis of the data above, prepare the appropriate entries, assuming that the cash basis method is used.
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Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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