On August 1, 2016 Pereira Corporation has sold 1,600 Wiglows to Mendez Companyat $450 each. Mendez also
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Question:
On August 1, 2016 Pereira Corporation has sold 1,600 Wiglows to Mendez Companyat $450 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $12 per unit. In 2016, Pereira incurred warranty costs of $9,200. Costs for 2017 were $7,000.
Required:
1. Prepare the journal entries for the preceding transactions
2. Show how Pereira would report the items on the December 31,2016, balance sheet
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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