Q1

During December 2009, Fashion Vixen Publishing sold 2,000 12-month annual magazine subscriptions at a rate of $20 each. The first issues were mailed in February 2009. Prepare the entries on Fashion Vixens books to record the sale of the subscriptions and the mailing of the first issues.

Q2

On December 1, B-win Company introduces a new product that includes a one-year warranty on parts. In December, 200 units are sold. Management believes that 2% of the units will be defective and that the average warranty costs will be $30 per unit. Prepare the adjusting entry at December 31 to accrue the estimated warranty cost

Q3

During December 2008, Fashion Vixen Publishing sold 2,500 12-month annual magazine subscriptions at a rate of $30 each. The first issues were mailed in February 2009. Prepare the entries on Fashion Vixens books to record the sale of the subscriptions and the mailing of the first issues.