Please prepare the journal entries for the following statement: The Company in $2023$ initiated a new warranty program to complement the existing warranty that is part of the selling price of the products sold. The new program covers repairs $($parts and labour$)$ that are beyond what is provided in the existing product warranty. In $2023,6,050$ customers purchased the two$-$year extended warranty at a price of $$300$ per contract $($included in the revenue amount reported on the Statement of Comprehensive Income$).$ During $2023,$ the Company incurred costs of $$427,100($included in sales and marketing expense$).$ In establishing the price of the extended warranty, the Company anticipated incurring costs of approximately $$240$ per contract with the expected costs to be incurred predominantly in the $2$nd year of the contract.

Answer rating: 100% (QA)

1 To record revenue from the sale of extended warranties ... View the full answer