Dandy Shack Computers are in the business of selling computer systems all across the country. Competition...

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Dandy Shack Computers are in the business of selling computer systems all across the country. Competition is fierce, and Dandy Shack tries to attract business by offering a three-year warranty on each sale. Total sales for 2019 are $856,000. The company sold 523 computers during the year. Generally, 8% of the actual physical computers sold have some sort of warranty issue within three years, with an average cost of $70 in parts (from inventory). Calculate the estimated warranty expense for the current year. Prepare the Journal entry. Dandy Shack Computers are in the business of selling computer systems all across the country. Competition is fierce, and Dandy Shack tries to attract business by offering a three-year warranty on each sale. Total sales for 2019 are $856,000. The company sold 523 computers during the year. Generally, 8% of the actual physical computers sold have some sort of warranty issue within three years, with an average cost of $70 in parts (from inventory). Calculate the estimated warranty expense for the current year. Prepare the Journal entry.

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In the given case the sales for 2019 is for 523 computers Company issues w... View the full answer