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2. On November 10, 2020, Singh Electronics began to buy and resell scanners for $47 each. Singh uses the perpetual system to account for inventories.

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2. On November 10, 2020, Singh Electronics began to buy and resell scanners for $47 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new scanner is only $27. Singh estimates warranty costs based on 15% of the number of units sold. The following transactions occurred in 2020 and 2021 (ignore GST and PST): 2020 Nov 15 Sold 4,000 scanners for $188,000 cash. 30 Recognized warranty expense for November with an adjusting entry Replaced 280 scanners that were returned under the warranty 15 Sold 6,800 scanners. 29 Replaced 66 scanners that were returned under the warranty 31 Recognized warranty expense for December with an adjusting entry. 2021 Jan. 14 Sold 340 scanners. 20 Replaced 88 scanners that were returned under the warranty. 31 Recognized warranty expense for January with an adjusting entry. Dec 8 2. On November 10, 2020, Singh Electronics began to buy and resell scanners for $47 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new scanner is only $27. Singh estimates warranty costs based on 15% of the number of units sold. The following transactions occurred in 2020 and 2021 (ignore GST and PST): 2020 Nov 15 30 Dec 8 15 29 31 2021 Jan. 14 20 31 Sold 4,000 scanners for $188,000 cash. Recognized warranty expense for November with an adjusting entry. Replaced 280 scanners that were returned under the warranty. Sold 6,800 scanners. Replaced 66 scanners that were returned under the warranty. Recognized warranty expense for December with an adjusting entry. Sold 340 scanners. Replaced 88 scanners that were returned under the warranty. Recognized warranty expense for January with an adjusting entry

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