CEC Corporation is a computer equipment and electronics store. On 1 March 2 0 X 2 ,
Question:
CEC Corporation is a computer equipment and electronics store. On March X the store sold a computer to a customer for $ The manufacturer offers a oneyear 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 twoyear period. If the computer fails, CEC will replace the computer. The cost of the extended warranty is $
Required:
Prepare the journal entries in XX and X relating to this warranty. Assume the company has a December yearend and applies IFRS. If no entry is required for a transactionevent select No journal entry required" in the first account field.
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby