Question
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. Splish Factory provides a 2-year
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Splish Factory provides a 2-year warranty with one of its products which was first sold in 2020. Splish sold $955,800 of products subject to the warranty. Splish expects $136,410 of warranty costs over the next 2 years. In that year, Splish spent $64,790 servicing warranty claims. Prepare Splishs journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
2020 | |||
(To record sales) | |||
During 2020 | |||
(To record warranty claims) | |||
12/31/20 | |||
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