Question 2 (6 marks) Jupiter Appliances provides a 3-year warranty with one of its products, first sold in 2022. Jupiter sold CHF2,200,000 of products subject to the warranty. Jupiter expects CHF220,000 of warranty costs over the next 3 years. In 2022, Jupiter spent CHF151,000 servicing warranty claims. Prepare Jupiter's journal entry to record the sales (ignore the cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs; Jupiter now expects future warranty costs of CHF152,000. Answers: Question 3 Mann, Inc., which owes Doran Co. 6600,000 in notes payable with accrued interest of (54,000, is in ( 5 marks) C570, difficulty. To settle the debt, Doran agrees to accept Mann's equipment with a fair value of of of of 6840,000 , and accumulated depreciation of 195,000 . Instructions (a) Prepare the journal entry on Mann's books to record the settlement of this debt. (b) Prepare the journal entry on Doran's books to record the settlement of the receivable. Answers