Print 4 Not yet answered Marked out of 2000 Putin Madison Co. sells merchandise for $250,000 during the current year, along with a two-year warranty (covering this year and the following year for $25 per product Warranty costs are estimated to be 0.5% of sales. The company sold $2.500 of warranties during the current year and incurred actual costs of 1800 during the year related to the warranties. The comarcatricht in recention of warranty revenue a b anties, ignoring the cost of goods sold entry. Assume cash sales rent year. Assume cash payments. ng the current year Debit Credit Cash Accounts Receivable Inventory Fouipme Copyright Accounts Payable Aceved Cungen Dulced Warranty Revue Estimated in Lisbiy Wrat Payable Saytle Seneste Mode Pablo Discount on Note Payable Asset ermention Sales Ord Breakage leven Warranty Cot Goods Sold heret pene Legal Next Question 4 Not yet answered Marked out of 20.00 P Flag question Madison Co sells merchandise for $250,000 during the current year, along with a two-year warranty (covering this year and the following year for $25 per product Warranty cos are estimated to be 0.5% of sales. The company sold $2,500 of warranties during the current year and incurred actual costs of $800 during the year related to the warranties. The company uses straight-line recognition of warranty revenue. a. Record the sale of the merchandise and warranties, ignoring the cost of goods sold entry. Assume cash sales. b. Record the warranty service costs for the current year. Assume cash payments c. Record the warranty revenue recognized during the current year, Account Name Debit Credit To record the sale of merchandise and warranties To record warranty.co To acordat revenue Next Previous Save Answers