Question

Exercise 13-10 

Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $330. 

Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2020. Actual warranty costs (inventory) incurred in 2020 were $17,000. (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.) 

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Jul. 10,2020	Cash	800000		=200*4000
	Sales Revenue		800000
During 2020	Warranty expense	17000
	Inventory		17000
Dec. 31,2020	Warranty expense	49000		=(200*330)-17000
	Warranty Liability		49000