Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Early in 2020. Pharoah Equipment Company sold 500 Rollomatics at $6,000 each During 2020. Pharoah spent 521.000 servicing the 2-year assurance warranties that accompany the

image text in transcribed
image text in transcribed
Early in 2020. Pharoah Equipment Company sold 500 Rollomatics at $6,000 each During 2020. Pharoah spent 521.000 servicing the 2-year assurance warranties that accompany the Rollomatic All sales transactions are on a cash basis. Prepare 2020 entries for Pharoah. Aasume that Pharoah estimates the total cost of servicing the warranties in the second year will be $39.000. Of no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit eTextbook and Media List of Accounts Prepare 2020 entnes for Pharoah assuming that the warranties are not an integral part of the sale fa service-type warranty) Assume that of the sales total, 561,000 relates to sales of warranty contracts Warranty costs incurred in 2020 were 521.000 Estimate revenues to be recognized on a straight-line basis. Of no entry is required, select "No Entry for the accountities and enter O for the amounts Credit account titles are automatically indented when amount is entered. Do not Indent manually. Round intermediate calculations to decimal places, es 154657 answers to decimal places 25 5,125 Recordjournal entries in the order presented in the problem Date Account Titles and Explanation Debit Prepare 2020 entries for Pharoah assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, S61,000 relates to sales of warranty contracts Warranty costs incurred in 2020 were $21,000. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry for the account tidles and enter O for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places, eg, 154657 answers to decimal places, eg, 5.125. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit CM > To record we Vrowon

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Financial Accounting

Authors: Carl S. Warren, Jeff Jones, Amanda Farmer

1st Edition

0357507851, 9780357507858

More Books

Students also viewed these Accounting questions

Question

Compare and contrast verbal and nonverbal codes

Answered: 1 week ago

Question

Define and discuss the nature of ethnocentrism and racism

Answered: 1 week ago

Question

Define and discuss racial and ethnic stereotypes across cultures

Answered: 1 week ago