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Early in 2022, Sheryl Harris Equipment sold 530 Rollomatics at 6,360 each. During 2022, Harris spent 21,200 from Cash, Supplies, Wages Payable servicing the 2-year
Early in 2022, Sheryl Harris Equipment sold 530 Rollomatics at 6,360 each. During 2022, Harris spent 21,200 from Cash, Supplies, Wages Payable servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. (a) Your answer is partially correct. Prepare 2022 entries for Harris. Assume that Harris estimates the total cost of servicing the warranties will be 58,300 for the 2 years. (If no entry is required, select "No Entry" for the account titles and enter O 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.) Prepare 2022 entries for Harris. Assume that Harris estimates the total cost of servicing the warranties will be 58,300 for the 2 years. (If no entry is required, select "No Entry" for the account titles and enter O 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 At Sale: Cash Sales Revenue During 2022 Warranty Expense Cash Debit 3,370,800 21200 Dec. 31, 2022 Unearned Warranty Revenue 29150 Warranty Liability Credit 3,370 2 25
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