1) | ||
Account Titles and Explanation | Debit (in $ ) | Credit (in $ ) |
Cash | $ 289,464 | |
Sales Revenue ( 288 televisions x $ 925 ) |
$ 266,400 | |
Unearned Sales Warranty ( 248 x $ 93 ) |
$ 23,064 | |
(To record the Sale) | ||
2) | ||
Pharoah Company Balance Sheet (Partial) December 31, 2020 |
||
Current Liabilities: | ||
- Unearned Sales Warranty ( $ 23,064 / 3 ) |
$ 7,688 | |
Long -term Liabilities: | ||
- Unearned Sales Warranty | $ 15,376 | |
3) | ||
Account Titles and Explanation | Debit (in $ ) | Credit (in $ ) |
Unearned Sales Warranty | $ 7,688 | |
Sales Warranty (or) Warranty Revenue | $ 7,688 | |
(To record the Warranty Revenue) | ||
Warranty Expense | $ 5,850 | |
Parts Inventory | $ 2,130 | |
Accrued Payroll | $ 3,720 | |
(To record the Warranty Expense) | ||
4) | ||
Pharoah Company Balance Sheet (Partial) December 31, 2021 |
||
Current Liabilities: | ||
- Unearned Sales Warranty ( $ 23,064 / 3 ) |
$ 7,688 | |
Long -term Liabilities: | ||
- Unearned Sales Warranty | $ 7,688 |
Pharoah Company sells televisions at an average price of $925 and also offers to each customer...
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