Wildhorse Corp. manufactures a wide range of equipment. The company's biggest seller is the Whatchamacallit, which...

  

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Wildhorse Corp. manufactures a wide range of equipment. The company's biggest seller is the Whatchamacallit, which sells for $4,670 each. Each Whatchamacallit carries with it a 2-year warranty against manufacturing defects. In addition to this warranty, customers can purchase an optional extended warranty for $1,660 extra that extends the Whatchamacallit's warranty an additional 2 years. From experience, Wildhorse Corp. has determined that each Whatchamacallit sold will average $1,010 in replacement parts (ignore labour costs for repairs). In 2017, the company sells 540 Whatchamacallits; 310 of these customers decide to purchase the optional extended warranty. Also in 2017, the company incurred $223,700 in total repair costs (replacement parts out of inventory). (a) 2 Your answer is partially correct. Try again. Prepare the journal entry to record the sale of the Whatchamacallits and the extended warranties (sales would take place throughout the year; prepare only one entry at December 31, 2017 for the total sales). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Cash 1976400 Sales Revenue 146180 Unearned Warranty Revenue 514600 (b) 2 Your answer is partially correct. Try again. Prepare the 2017 joumal entries related to the product warranties using the expense approach. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Warranty Expense 223700 Accounts Payable 223700 (To record the repair costs incurred) Warranty Expense 545400 Warranty Liability 545400 (To record the liability of outstanding warranties) Wildhorse Corp. manufactures a wide range of equipment. The company's biggest seller is the Whatchamacallit, which sells for $4,670 each. Each Whatchamacallit carries with it a 2-year warranty against manufacturing defects. In addition to this warranty, customers can purchase an optional extended warranty for $1,660 extra that extends the Whatchamacallit's warranty an additional 2 years. From experience, Wildhorse Corp. has determined that each Whatchamacallit sold will average $1,010 in replacement parts (ignore labour costs for repairs). In 2017, the company sells 540 Whatchamacallits; 310 of these customers decide to purchase the optional extended warranty. Also in 2017, the company incurred $223,700 in total repair costs (replacement parts out of inventory). (a) 2 Your answer is partially correct. Try again. Prepare the journal entry to record the sale of the Whatchamacallits and the extended warranties (sales would take place throughout the year; prepare only one entry at December 31, 2017 for the total sales). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Cash 1976400 Sales Revenue 146180 Unearned Warranty Revenue 514600 (b) 2 Your answer is partially correct. Try again. Prepare the 2017 joumal entries related to the product warranties using the expense approach. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Warranty Expense 223700 Accounts Payable 223700 (To record the repair costs incurred) Warranty Expense 545400 Warranty Liability 545400 (To record the liability of outstanding warranties)

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B D E G H I Account title No of Whatchanacallits sel... View the full answer