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Superior Skateboard Company, located in Ontario, is preparing adjusting entries at Decernber 31, 2023. Anl atialy:s ifveahil the following: a. During December, Superior sold 8,500
Superior Skateboard Company, located in Ontario, is preparing adjusting entries at Decernber 31, 2023. Anl atialy:s ifveahil the following: a. During December, Superior sold 8,500 skateboards that carry a 60 -day warranty The skateboard sales totalled 540000 Tine company expects 10% of the skateboards will need repair under warranty and it estimates that the average repair cosif pat unit will be $37. b. A disgruntled employee is suing the company. Legal advisers believe that it is probable that Superior will have ta poy dimagen the amount of which cannot be reasonably estimated. c. Superior needs to record previously unrecorded cash sales of $2,300,000 (cost of sales 70% ) plus applicable HST d. Superior recognizes that $115,000 of $180,000 recelved in advance for skateboards has now been eamed. Required: Prepare any required adjusting entries at December 31, 2023, for each of the above. If no entry is required for a transectioniavint. select "No journal entry required" in the first account field.) following a. Buring Decembee, Superior sold 8, 500 shateboards that cany a 60-day wantanty. The shiseboard ulestatiled fandoon the company expects 10% of the skateboards will need repair under warianty and if estimates thar the iverage iepair coit ber ant and be $37. amount of which cannot be reasonably estimated. c. Superior needs to record previously unrecorded cash sales of $2300000 (cost of sales 704 pius aoplicable HII d. Superior recognizes that $115,000 of $180000 received in advance for skoteboards has now been earned Required: Prepare any required adjusting entries at December 31. 2023 , for each of the above. if no entry is required for a nansactionifverti; select "No journal entry required" in the first account field.) Journal entry worksheet
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