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Sarasota Corporation sells home entertainment systems. The corporation also offers to sell its customers a two - year warranty contract as a separate service. During
Sarasota Corporation sells home entertainment systems. The corporation also offers to sell its customers a twoyear warranty
contract as a separate service. During Sarasota sold warranty contracts at $ each. The corporation spent $
servicing warranties during and it estimates that an additional $ will be spent in the future to service the warrantles.
Sarasota recognizes warranty revenue based on the proportion of costs incurred out of total estimated costs.
Prepare Sarasota's journal entry for the sale of warranty contracts. Credit account titles are automatically indented when the amount
is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select No Entry" for the account titles and
enter for the amounts.
Account Titles and Explanation
Debit
Credit
Unearned Revenue
Prepare Sarasota's journal entry for the cost of servicing the warranties. Credit account titles are automatically indented when the
amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select No Entry" for the account titles
and enter for the amounts.
Account Titles and Explanation
Debit
Credit
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