Question

Exercise 13-11 Early in 2020, Windsor Equipment Company sold 500 Rollomatics at $5,500 each. During 2020, Windsor spent $22,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Your answer is partially correct. Try again. Prepare 2020 entries for Windsor. Assume that Windsor estimates the total cost of servicing the warranties in the second year will be $38,000. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit TAt Sale Cash 2750000 | Sales Revenue 2750000 During 2020 Warranty Expense 22000 Cash Cash 22000 TDec. 31, 2020 Warranty Expense 16000 Warranty Liability 16000

Answer 1

Date	Accounts Titles and Explanation	Debit	Credit
During 2020	Warranty Expense	$22,000
	Cash, Inventory, Accrued Payroll		$22,000
Dec 31, 2020	Warranty Expense	$38,000
	Warranty Liability		$38,000
During 2020	Warranty Expense	$22,000
	Cash, Inventory, Accrued Payroll		$22,000
Dec 31, 2020	Warranty Expense	$22,367
	Warranty Liability		$22,367
	($61,000 x $22,000/$60,000)