Question
New Age Computers manufactures and sells pagers and radio paging systems which include a 180 day warranty on product defects. It also sells an extended
New Age Computers manufactures and sells pagers and radio paging systems which include a 180 day warranty on product defects. It also sells an extended warranty which provides an additional two years of protection. On May 10, it sold a paging system for $4,500 and an extended warranty for another $1,400. The journal entry to record this transaction would include a credit to Unearned Warranty Revenue of $1,400. a credit to Warranty Revenue of $5,900. a credit to Warranty Revenue of $1,400. a credit to Sales of $4,500 and a credit to Warranty Revenue of $1,400.
a credit to Unearned Warranty Revenue of $1,400.
a credit to Warranty Revenue of $5,900.
a credit to Warranty Revenue of $1,400.
a credit to Sales of $4,500 and a credit to Warranty Revenue of $1,400.
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