Soundgarden Company sold 200 color laser copiers in 2014 for $4,000 apiece, together with a one-year warranty.

Question:

Soundgarden Company sold 200 color laser copiers in 2014 for $4,000 apiece, together with a one-year warranty. Maintenance on each copier during the warranty period averages $330.

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 $17,000.
(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  answer-question

Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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