Question: CEC Corporation is a computer equipment and electronics store. On 1 March 20X2, the store sold a computer to a customer for $1,800. The manufacturer

CEC Corporation is a computer equipment and electronics store. On 1 March 20X2, the store sold a computer to a customer for $1,800. The manufacturer offers a one-year warranty, and CEC offers an extended warranty for another two years. The extended warranty will provide the customer with full service of the computer over a two-year period. If the computer fails, CEC will replace the computer. The cost of the extended warranty is $168. Required: Prepare the journal entries in 20X2, 20X3 and 20X4 relating to this warranty. Assume the company has a 31 December year-end and applies IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account

repare the journal entry required on 1 March 20X2

Prepare the journal entry required on 31 December 20X2

Prepare the journal entry required on 31 December 20X3:

Prepare the journal entry required on 31 December 20X4:

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