19A computer manufacturing company produced 600 computers this year. The company provides a two-year warranty to their customers on the computers. The company estimates that the warranty cost perunit will be $75 per computer. The company sold 550 of the computers this year. The actual warranty cost this year on these computers averaged $80 per computer. These warranties were honored by cashpayments to the customers.Which journal entry should be made during the year to record the warranty cost?Debit Warranty Expense for $41,250; Credit Cash for $41,250Debit Warranty Expense for $44,000; Credit Cash for $44,000Debit Warranty Expense for $48,000; Credit Cash for $48,000Debit Warranty Expense for $45,000; Credit Cash for $45,000

We use the actual warranty expenses to record journal entries.We are given the following…

Answered: 19 A computer manufacturing company…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 10RE

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Refer to the photo
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