$($b$)$ What are the accounts for the cost of servicing the warranties contracts?Formula: Multiply, Divide; Cell Referencing

BE$13\mathrm{.}14-$ Using Excel to Record Warranty Transactions

PROBLEM

Leppard Corporation sells DVD players. The corporation also offers its

customers a warranty contract. The following information pertains to

warranty activity during $2020.$

Warranty contract term

Number of warranty contracts sold

Selling price of each warranty contract

Warranty servicing costs

$ $180,000$

Assume the service costs are inventory costs.

Student Work Area

Required: Provide input into cells shaded in yellow in this template. Use cell

references to the Problem area, with mathematical formulas to calculate any

amounts not given.

Prepare Leppard's journal entries for the following:

$($a$)$ The sale of contracts

$($b$)$ The cost of servicing the warranties contracts

$($c$)$ The recognition of warranty revenue

$($a$)$

$($b$)$

$($c$)$