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Early in 2025, Stellar Equipment sold 400 Rollomatics at $6,600 each. During 2025, Stellar spent $20,000 servicing the 2-year assurance warranties with inventory, cash, and
Early in 2025, Stellar Equipment sold 400 Rollomatics at $6,600 each. During 2025, Stellar spent $20,000 servicing the 2-year assurance warranties with inventory, cash, and payables that accompany the Rollomatic. All sales transactions are on a cash basis. (a) Prepare 2025 entries for Stellar. Assume that Stellar estimates the total cost of servicing the warranties in the second year will be $40,000. (If no entry is required, select "No Entry" for the account titles and enter of for the amounts. Credit account tittes are automatically indented when amount is entered. Do not indent manually. List all debitentries before creditentries.)
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