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Grouper Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2020, Gro
Prepare Groupers journal entry for the sale of contracts. Assume the service costs are inventory costs. (If no entry is requ
Prepare Groupers journal entry for the cost of servicing the warranties. Assume the service costs are inventory costs. (If n
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Transaction Account Titles and Explanation Debit Credit
1 Cash (20000*114) $ 22,80,000
Unearned warranty revenue $ 22,80,000
(To record the sale of contracts)
2 Warranty Expenses $ 1,88,000
Inventory $ 1,88,000
(To record cost of Servicing the Warranty)
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