Pronghorn Company sold 214 color laser copiers on July 10, 2017, for $3,800 apie
ID: 2406395 • Letter: P
Question
Pronghorn Company sold 214 color laser copiers on July 10, 2017, for $3,800 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $303.
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 $17,400. (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.)
Date
Account Titles and Explanation
Debit
Credit
Date
Account Titles and Explanation
Debit
Credit
Jul. 10, 2017During 2017Dec. 31, 2017
Jul. 10, 2017During 2017Dec. 31, 2017
Jul. 10, 2017During 2017Dec. 31, 2017
Explanation / Answer
Answer
particulars debit credit cash (214 * 3800 ) 813200 To sales revenue 813200 warranty expense 17400 To cash 17400 warranty expense ( 64842 * 17400 ) 47442 To warranty liability 47442Related Questions
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