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Exercise 3-Warranties. (9 points) Crazy Steve Company sells computers for $1,500 each and also gives each customer a 1-year warranty that requires the company
Exercise 3-Warranties. (9 points) Crazy Steve Company sells computers for $1,500 each and also gives each customer a 1-year warranty that requires the company to perform periodic services and to replace defective parts. During 2019, the company sold 2,500 computers. Based on past experience, the company has estimated the total warranty costs are $130 for per unit sold. (Assume sales all occur at December 31, 2019.) In 2019, Crazy Steve incurred actual warranty costs of $180,0000 relative to 2019 computer sales. Instructions Record the journal entries to record the sales of the units, the warranty estimate and the actual warranty costs.
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