Question (1)

Best shop sale company sold 4500 washing machines on March 15, 2010, for $3,000 a piece, together with a 1-year warranty. Maintenance on each washing machine during the warranty period is estimated to be $100. Actual warranty costs (inventory) incurred in 2010 were $ 12,000. Required: - Prepare entries to record the following:

a) Sale of the washing machines.

b) Related warranty costs.

c) The accrual on December 31, 2010

Question (2)

Explain the six major categories of Intangible Assets?