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On January 2 , 2 0 2 5 , Pharoah Company sells production equipment to Coronado Inc. for $ 5 2 , 0 0 0
On January Pharoah Company sells production equipment to Coronado Inc. for $ Pharoah includes a year
assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January
During Pharoah incurs costs related to warranties of $ At December Pharoah estimates that $ of warranty
costs will be incurred in the second year of the warranty.
a
Prepare the journal entry to record this transaction on January and on December assuming financial
statements are prepared on December Credit account titles are automatically indented when the amount is entered. Do not
indent manually. If no entry is required, select No entry" for the account titles and enter for the amounts. List all debit entries before
credit entries. Record journal entries in the order presented in the problem.
Date
Account Titles and Explanation
Debit
eTextbook and Media
List of Accounts
Attempts: of used
b
Repeat the requirements for a assuming that in addition to the assurance warranty, Pharoah sold Coronado an extended
warranty servicetype warranty for an additional years for $Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select No entry" for the account titles and enter for the
amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.
Date
Account Titles and Explanation
Debit
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