Fo$,$ mula: Multiply, Divide; Cell Referencing

BE$13\mathrm{.}14-$ Using Excel to Record Warranty Transactions PROBLEM

Leppard Corporation sells DVD players. The corporation also offers its customers a warranty contract. The following information pertains to warranty activity during $2020.$

$\backslash$table$[[$Warranty contract term,$4,$years$],[$Number of warranty contracts sold,$20,000,],[$Selling price of each warranty contract $$,99,],[$Warranty servicing costs,$$180,000,]]$

Assume the service costs are inventory costs.

Student Work Area

Required: Provide input into cells shaded in yellow in this template. Use cell references to the Problem area, with mathematical formulas to calculate any amounts not given.

Prepare Leppard's journal entries for the following:

$($a$)$ The sale of contracts

$($b$)$ The cost of servicing the warranties contracts

$($c$)$ The recognition of warranty revenue

$($a$)$ Debit Credit

$($b$)$

$($c$)$