Question
Marigold Company sold 10,400 Super-Spreaders on December 31, 2022, at a total price of $956,800, with a warranty guarantee that the product was free of
Marigold Company sold 10,400 Super-Spreaders on December 31, 2022, at a total price of $956,800, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $582,400. The assurance warranties extend for a 2-year period and are estimated to cost $43,000. Marigold also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2022: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash.
Amounts Reported in Income | ||
---|---|---|
Sales revenue | $enter a dollar amount | |
Warranty Expense | enter a dollar amount | |
Amounts Reported on the Statement of Financial Position | ||
Unearned Service Revenue | $enter a dollar amount | |
Cash | enter a dollar amount | |
Warranty Liability | enter a dollar amount |
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