Question
Jane Company extends a warranty on childrens tablets. They estimate that 3% of tablets will need to be replaced. The sales price of one tablet
Jane Company extends a warranty on childrens tablets. They estimate that 3% of tablets will need to be replaced. The sales price of one tablet is $150 and the cost is $75. Total tablet sales were 10,000 tablets for $1,500,000 in 2020. On February 14, 2021, Jane company replaced 30 tablets under warranty. REQUIRED: 1. Prepare the necessary adjusting entry on December 31, 2020 below: 2. Prepare the necessary journal entry on February 14, 2021 below:
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
