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Grouper Company sold 9,600 Super-Spreaders on December 31, 2020, at a total price of $864.000, with a warranty guarantee that the product was free of
Grouper Company sold 9,600 Super-Spreaders on December 31, 2020, at a total price of $864.000, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $566,400. The assurance warranties extend for a 2-year period and are estimated to cost $36,000. Grouper also sold extended warranties (service-type warranties) related to 1.800 spreaders for 2 years beyond the 2-year period for $12,600. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue. warranty liability, and cash, Amounts Reported in Income Sales revenue $ Warranty Expense Amounts Reported on the Balance Sheet Unearned Service Revenue $ Amounts Reported in Income Sales revenue Warranty Expense Amounts Reported on the Balance Sheet Unearned Service Revenue $ Cash Warranty Liability
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