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Fenway Park LLC sold 150 color laser copiers in 2015 for $4,000 apiece, together with a one-year warranty. Maintenance on each copier during the warranty
Fenway Park LLC sold 150 color laser copiers in 2015 for $4,000 apiece, together with a one-year warranty. Maintenance on each copier during the warranty period averages $300. (Must attempt both sections for full quality points) Instructions (a)Prepare entries to record the sale of the copiers and the related warranty costs, assuming that the accrual method is used. Actual warranty costs incurred in 2015 were $17,000. (b)On the basis of the data above, prepare the appropriate entries, assuming that the cash-basis method is used.
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