ed Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations...
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ed Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of December are $550,000. Actual warranty expenditures in January of the following year were $20,500. Required: 1. Record warranty expense and warranty liability for the month of December based on 4% of sales. 2. Record the payment of the actual warranty expenditures of $20,500 in January of the following year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the payment of the actual warranty expenditures of $20,500 in January of the following year. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. No Transaction General Journal 1 1 Warranty Liability Cash < Required 1 Required 2 > Debit Credit 1,500 x 1,500 x ed Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of December are $550,000. Actual warranty expenditures in January of the following year were $20,500. Required: 1. Record warranty expense and warranty liability for the month of December based on 4% of sales. 2. Record the payment of the actual warranty expenditures of $20,500 in January of the following year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the payment of the actual warranty expenditures of $20,500 in January of the following year. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. No Transaction General Journal 1 1 Warranty Liability Cash < Required 1 Required 2 > Debit Credit 1,500 x 1,500 x
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Required 1 To record warranty expense and warranty liability for the month of December based on 4 ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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