Homework Answers
| Date | Account title | Debit | credit |
| 12/31/2021 | unearned revenue | 16500 | |
| warranty expense | 9345 | ||
| warranty revenue | 16500 | ||
| cash | 9345 |
**Being extended warranty revenue earned (one year from one year assurance period) during the period along with warranty cost incurred .
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On January 1, 2020, Oriole Ltd. sold on account 1,400 units of its product for a...
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On January 1, 2020, Ivanhoe Ltd. sold on account 1,000 units of
its product for a total price of $571,000 with a warranty guarantee
that the products were free of any defects. The products have a
one-year assurance-type warranty and Ivanhoe estimates that the
cost will be $26,200. The cost of the units is $471,000. In
addition, the company sold extended warranties related to 600 units
for a one-year period beyond the one-year assurance period at a
cost of $16,700....
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On January 2, 2020, Blue Company sells production equipment to
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service with the sale of all its equipment. The customer receives
and pays for the equipment on January 2, 2020. During 2020, Blue
incurs costs related to warranties of $930. At December 31, 2020,
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Prepare the journal entry to record this transaction on...
On January 2, 2020, Kingbird Company sells production equipment to Fargo Inc. for $55,000. Kingbird includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020. During 2020, Kingbird incurs costs related to warranties of $940. At December 31, 2020, Kingbird estimates that $640 of warranty costs will be incurred in the second year of the warranty. Prepare the journal entry to record this transaction on...
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warranty contract that requires the corporation to replace
defective parts and provide the necessary repair labour. During
2020, the corporation sells for cash 380 computers at a unit price
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two-year warranty costs are estimated to be $166 for parts and $189
for labour per unit. (For simplicity, assume that all sales
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