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Sandhili inc manufactures and sells computers that include an assurance-type warranty for 90 days. Sandhalil offers an optional extended coverage plan under which it will
Sandhili inc manufactures and sells computers that include an assurance-type warranty for 90 days. Sandhalil offers an optional extended coverage plan under which it will repair or replace any defective part for three years from the expiration of the assurance: type warranty, Because the optional extended coverage plan is sold separately. Sandhill determines that the three years of the extended coverage represent a separate performance obligation. The total transaction price for the sale of a compoter and the extended warranty is $3,860 on October 1,2023 . Sandhill determines that the stand-alone sellingprice of each is $3.250 and $610. respectively. Further, Sandhill estimates, based on historical experience, that it wil incur $240 in costs to repair defects that arise (b) Prepare the journal entry (or entries) to record the cash sale of the computer, cost of goods sold and labiilties retated to the warranties fCredit account tities are eutomotically indented when the cmount is entere, Do not indent marualy. If no entry as requirndi select "Wo Entry" for the account titlerand enter Ofor the amounts List all debit entries before credl entries)
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