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B. Albany Entertainment, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Albany also offers an optional extended
B. Albany Entertainment, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Albany also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. On October 05, a customer purchase a stereo with the extended warranty is $3,000. The standalone price of each is $2,300 and $900, respectively. The estimated cost of the assurance- warranty is $350. Prepare the journal entry to record this transaction on October 05
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