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Use the following Information to answer the following three items. Fullerton Corporation sells office printers and provides a two-year assurance-type warranty on each printer. In
Use the following Information to answer the following three items. Fullerton Corporation sells office printers and provides a two-year assurance-type warranty on each printer. In 2020, the company sold 1000 printers and the estimated assurance-type warranty costs were $100 per printer. Actual warranty costs incurred were $40,000 in 2020 and $60,000 in 2021. In addition, Fullerton Corporation offers a service-type warranty for an additional two years of warranty on each printer. In 2020 the company sold 250 service-type warranty contracts for $200 each. The revenue on service-type warranties is recorded on a straight-line basis in 2022 and 2023 (after the assurance-type warranty expires). First: The journal entry to record the sale of the printers and related warranties in 2020 would include Warranty Expense [ Choose Uneamed Warranty Revenue [Choose D Question 11 2.5 pts (Enter a Second: In 2021, Fullerton Corporation would record Warranty Liability of positive number for a credit, a negative number for a debit, or O for no change). Question 11 2.5 pts Second: In 2021, Fullerton Corporation would record Warranty Liability of ______ (Enter a positive number for a credit, a negative number for a debit, or O for no change). Question 12 2.5 pts Third: In 2022, Fullerton company would prepare the following entry to record service-type warranty revenue. Debit unearned warranty revenue $50,000, credit warranty revenue $50,000 Debit warranty liability $50,000, credit warranty revenue $50,000. Debit warranty liability $25,000, credit warranty revenue $25,000. O Debit unearned warranty revenue $25,000, credit warranty revenue $25,000
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