Question: Question 6_10 marks (Record your answers directly below the question. Pandorra Products Inc. generated sales for the current month of 220 units at $230 each,
Question 6_10 marks (Record your answers directly below the question. Pandorra Products Inc. generated sales for the current month of 220 units at $230 each, subject to GST/HST sales tax of 10%. All sales are "on account". The product sold is not GST/HST tax exempt, therefore the customer must 'bear the cost'. Each unit carries a 6-month warranty. Pandorra Products Inc. promises to repair the unit should it become defective. The estimated cost per unit to the company to honour the warranty is $50 and experience has shown that approximately 6% of all units will have to be repaired during the warranty period. The manufacturing cost per unit is $100 per unit. Required. Prepare all journal entries for the following: a. Record sales for the current month including the taxes collected. (Note that the company uses a perpetual inventor system.) b Record the estimated warranty liability associated with the current month's sales. C Assume that 22 units from the sales total above were returned for repair work. The cost per unit to repair was $52. Record the entry to account for the warranty work Assume that Pandorra pais a third party to complete the repairs
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