i) Required:

Prepare the 2 journal entries as of January 1, 2021 for Machinex Lid. to record the sale of the assembly line line Leave a space between each entry. Date Account Debit Credit.

ii) Required:

Prepare the 3 journal entries Machinex Ltd, would record during 2021 when 20 hours of service are performed at a cost of $2,300. The warranty work results in expenditures of $3,700. Debit Credit Account.

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B3) Machinex Ltd. sells an assembly line on account for $100,000 on January 1, 2021 The details of the sale are: 1) The cost of the assembly line was $70,000, and the purchase price includes an assurance warranty for one year that the assembly line will be fixed or replaced if it does not perform to certain specifications. 2) The purchase price also includes 20 hours of service to maintain the assembly line over this period. The stand-alone price for the maintenance service is $2,500. 3) Based on past experience the company estimates the warranty costs for defective product will be $4,600. 4) Machinex Ltd. uses the cost deferral warranty method. B3) Machinex Ltd. sells an assembly line on account for $100,000 on January 1, 2021 The details of the sale are: 1) The cost of the assembly line was $70,000, and the purchase price includes an assurance warranty for one year that the assembly line will be fixed or replaced if it does not perform to certain specifications. 2) The purchase price also includes 20 hours of service to maintain the assembly line over this period. The stand-alone price for the maintenance service is $2,500. 3) Based on past experience the company estimates the warranty costs for defective product will be $4,600. 4) Machinex Ltd. uses the cost deferral warranty method.

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January 1 2021 Sale of Assembly Line Debit Accounts Receivab... View the full answer