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Exercise 18-27 Sage Inc. manufactures and sells computers that inc ude an assurance-type warranty or the first 90 days. Sage offers an optional extended coverage
Exercise 18-27 Sage Inc. manufactures and sells computers that inc ude an assurance-type warranty or the first 90 days. Sage offers an optional extended coverage Plan under which t w repair or replace a y defective part or 3 years from the expiration ofthe assurance-type warranty. Because the optional extended coverage Plan is sold separately, sage determin that the 3 years of extended coverage represents separate performance obligation. T e total transaction price for the sale of a computer and the extended warranty s 3,350 on October 1, 2017, and sage determines the standalone selling price of ach is 52,920 and 5430, respectively. Further, Sage estimates, based on historical experience, it will incur $210 in costs to rapair defacts that arise wthin the so-day covarage pariod for tha assuranca-typa warranty. Tha cost of the aquipmant is $1,570. Assume that the $210 in costs to rapair dafacts in the computars occurrad on Octobar 23, 2017 (a) Prapare tha journal antryCias) to record the October transactions ralated to salo of the computars. (Crodit account titlos are automatically indanted when tha amount is ontarod. Do not indont manually. If no antry is required, soloct "No ontry" for the account titles and onter O for the amounts.) Date Account Titles and Explanation Debil Credit To record aea) To record coat of goods sold) To record warranty cxpencs) Question Attempts: O of 7 used
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