Question

Exercise 13-10

Buffalo Company sold 199 color laser copiers on July 10, 2017, for $3,930 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $354.

Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2017. Actual warranty costs (inventory) incurred in 2017 were $16,230. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jul. 10, 2017During 2017Dec. 31, 2017
Jul. 10, 2017During 2017Dec. 31, 2017
Jul. 10, 2017During 2017Dec. 31, 2017

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Jul. 10, 2017	Cash	782070		=199*3930
	Sales Revenue		782070
During 2017	Warranty expense	16230
	Inventory		16230
Dec. 31, 2017	Warranty expense	54216		=(199*354)-16230
	Warranty Liability		54216