Main Company sells 100 televisions on June 1, 2015, at a total price of 35,000 with a

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Main Company sells 100 televisions on June 1, 2015, at a total price of €35,000 with a warranty guarantee that the product was free of any defects. The assurance warranties extend for a 2-year period and are estimated to cost €1,000. Main also sold extended warranties for €800 related to the televisions covering 2 additional years beyond the assurance warranty period. Prepare the journal entries that Main should make in 2015 related to the sale of the televisions and related warranties. Warranty costs incurred in 2015 were €150.

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Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

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

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