HWK 13 (Ch. 8) 8 Required information Exercise 8-14A Record warranties (LO8-5) The following information applies to the questions displayed below Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Sales for the month of December are $550,000. Actual warranty expenditures in January of the following year were $20.500 Part 1 of 3 lers expects warranty costs to be approximately 4% of sales 0.5 Exercise 8-14A Part 1 Required: 1. Does this situation represent a contingent liability? Yes or No Yes No C Prev89 10 o11Next> 13 (Ch. 8) Help 9 Required information Exercise 8-14A Record warranties (LO8-5) The following information applies to the questions displayed below Part 2 of 3 Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous expenence. Computer wholesalers expects warranty costs to be approximately 4% of sales, Sales for the month of December are $550,000. Actual warranty expenditures in January of the following year were $20,500 ReferencesExercise 8-14A Parts 2 & 3 2.&3. Record the necessary entries in the Journal Entry Worksheet below. of no entry is required for a particular transactionevent select "No Journal Entry Required" in the first account field.) Journal entry worksheet View transaction list Journal entry worksheet 2 Record the actual warranty expenditures. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 9 10 of 11 Next Prev 10 Required information Exercise 8-14A Record warranties (LO8-5) The following information applies to the questions displayed below) Part 3 of 3 Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer wholesalers expects warranty costs to be approximately 4% of sale Sales for the month of December are $550,000. Actual warranty expenditures in January of the following year were $20,500 0.5 points References Exercise 8-14A Part 4 4. What is the balance in the Warranty Liability account after the entries in Part 2 and 3? 10 of 11 Next Prev
