Question
Q6. On Jan 1, 2019 Miley Co. sold 700 computers. The $1,500 cash price included a 2-year assurance warranty. Miley estimated that over the 2-year
Q6. On Jan 1, 2019 Miley Co. sold 700 computers. The $1,500 cash price included a 2-year assurance warranty. Miley estimated that over the 2-year period, warranty costs would amount to $90 for each computer sold. Assume warranty costs of $18,000 were incurred during 2019. The remaining warranty costs were incurred during 2020
Provide journal entries to record these transactions, commencing with the sale in Jan 2019. [3 marks]
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Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald Hilton, David Platt
10th edition
78025664, 978-0078025662
