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Current Attempt in Progress Sarasota Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the
Current Attempt in Progress Sarasota Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2020 , the corporation sells for cash 415 computers at a unit price of $2,580. On the basis of past experience, the 2-year warranty costs are estimated to be $145 for parts and $195 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2020.) The warranty is not sold separately from the computer. (a) Record any necessary journal entries in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Record any necessary journal entries in 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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