Question
Assume that actual replacement costs of defective DVDs ? sold under warranty during 2017 ? were 700 in 2018. In addition, in 2018, Bookmarker sold
Assume that actual replacement costs of defective DVDs ? sold under warranty during 2017 ? were €700 in 2018. In addition, in 2018, Bookmarker sold DVDs without a warranty from the publisher for a total amount of €34,000. The actual replacement costs of defective DVDs ? sold under warranty during 2018 ? were €350 in 2019. Make the journal entries and explain how these actual replacement costs affect Bookmarker’s balance sheet and income statement in 2017, 2018 and 2019.
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
