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Please show calculation where required There are 2 parts of it and one part has 6 journal entries and the second part has 5 journal
Please show calculation where required
There are 2 parts of it and one part has 6 journal entries and the second part has 5 journal entries. Please answer all of it
On 30 April 20X2, Neuman Ltd. sells a product to a customer for $648,000. The product carries a one-year assurance warranty. Neuman management estimates that the probable cost of fulfilling the warranty will be $54,000. Between 1 May and 31 December 20X2, the actual warranty cost was $21,600. On 31 December 20X2, management decides that the probable additional warranty cost will be no more than $14,200. Between 1 January and 30 April 20X3, the additional cost was $12,200. Required: 1. Prepare the entries concerning the sale and the warranty for 30 April 20X2 through 30 April 20X3. transaction/event, select "No journal entry required" in the first account field.) View transaction list :X: 1 Record the sales (Assume credit sales). 2 Record the set up estimated warranty provision. Record the costs incurred. Record the reduce warranty provision to new estimate. Credit 5 Record the costs incurred. 6 Record the unused warranty provision. 2. Assume instead that the warranty now includes service and is sold separately with a stand-alone value of $83,000. The product has a stand-alone value of $642,000 and the total contract is $648,000. Prepare the relevant journal entries for 30 April 20x2 through 30 April 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to one decimal place.) View transaction list ... :X: ..: 1 > Record the sale, with deferral for warranty (Assume credit sales) 2 Record the costs incurred. 3 Record the amortization of deferred revenue. 4 Record the costs incurred. Credit 5 Record the amortization of deferred revenueStep by Step Solution
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