Question

Bridgeport Company sold 202 color laser copiers on July 10, 2017, for $3,720 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $355.

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 $18,560. (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	Debit	Credit
		$	$
July 10,2017	Cash ( 202 x $ 3,720)	751,440
	Sales		751,440
	To record sale of copiers
	Warranty expense	18,560
	Inventory		18,560
	To record actual warranty expense incurred
December 31, 2017	Warranty expense $ ( 355 x 202) - $ 18,560	53,150
	Estimated warranty liability		53,150
	Adjustment for estimated warranty liability