Gateway 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.