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I need the answer, please. Intermediate Accounting Subject. Question 2: Calculation based Questions 22 Marks 1. Hansson SA begins production of a new machine in
I need the answer, please. Intermediate Accounting Subject.
Question 2: Calculation based Questions 22 Marks 1. Hansson SA begins production of a new machine in July 2017 and sells 3000 of these machines for $2,000 per unit cash by year-end. Each machine is under warranty for one year. Hansson estimates, based on past experience with similar machines, that the warranty cost will average $120 per unit. Further, as a result of parts replacements and services performed in compliance with machinery warranties, it incurs $58,000 in warranty costs in 2017 and $81,000 in 2018. Prepare dated journal entries for the sale and the related warranty costs for 2017 and 2018? 8 MarksStep by Step Solution
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