Question
Current Attempt in Progress Bramble Computer Company sells computers for $1,900 each, which includes a three-year warranty that requires the company to perform periodic services
Current Attempt in Progress Bramble Computer Company sells computers for $1,900 each, which includes a three-year warranty that requires the company to perform periodic services and to replace defective parts. During 2023, Bramble sold 420 computers on account. Based on past experience, the company has estimated the total three-year warranty costs at $75 for parts and $110 for labour. (Assume sales all occur at December 31, 2023) In 2024, Bramble Computer Company incurred actual warranty costs relative to 2023 computer sales of $9,800 for parts and $14.200 for labour. (a) Your answer is partially correct. Using the expense warranty approach, prepare the entries to reflect the above transactions (accrual method) for 2023 and 2024 Use Salaries and Wages Payable. (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 List all debit entries before credit entries)
The transactions of part a) create what balance under current liabilities in the 2023 statement of financial position? Current Liabilities-Warranty Liability $ eTextbook and Media List of Accounts
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