Question

( Pre Question 4 View Policies Current Attempt in Progress Early in 2017,Grouper Equipment Company sold 600 Rollomatics during 2017 at $5.700 each. During 2017. Grouper spent $20.000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on acash basis. Prepare 2017 entries for Grouper. Assume that Grouper estimates the total cost of servicing the warranties will be $57.000 for 2 years. fno entry is reguired select "No Entry for the account tden and enter Ofor the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit

Answer 1

Required 1 Date at sale Credit Debit $ 3,420,000 Account Titles and Explanation cash ( 600 x 5700) sales revenue Warranty expense cash, supplies wages payable $ 3,420,000 during 2017 $ 20,000 $ 20,000 $ 37,000 DECEMBER 31 2017 Warranty expense (57000-20000) | estimated warranty expense $ 37,000 Required 2 Date at sale Credit Debit $ 3,420,000 Account Titles and Explanation cash ( 600 x 5700) sales revenue Unearned warranty revenue Warranty expense cash, supplies wages payable $ 3,362,000 $ 58,000 during 2017 $ 20,000 $ 20,000 $ 29,000 DECEMBER 31 2017 Unearned warranty revenue (58000/2) warranty expense $ 29,000