and sells pagers and radio paging systems which include a 180-day assurance warranty on product defects. The company estimates the value of the 180-day warranty to be $3,000. New Age also sells an extended warranty which provides an additional two years of protection. On May 10, the company sold a paging system or $4,500 with an extended warranty for another $1,400. The journal entry to record this transaction would be: OA Debit OB OC D. Cash Sales revenue Unearned warranty revenue Cash Accounts receivable Sales revenue Service revenue Cash Sales revenue Cash Sales revenue 5,900 Debit 4,500 1,400 Debit 8,900 Debit 8,900 Credit 4,500 1,400 Credit 4,500 1,400 Credit 8,900 Credit 7,500

and sells pagers and radio paging systems which include a 180-day assurance warranty on product defects. The company estimates the value of the 180-day warranty to be $3,000. New Age also sells an extended warranty which provides an additional two years of protection. On May 10, the company sold a paging system or $4,500 with an extended warranty for another $1,400. The journal entry to record this transaction would be: OA Debit OB OC D. Cash Sales revenue Unearned warranty revenue Cash Accounts receivable Sales revenue Service revenue Cash Sales revenue Cash Sales revenue 5,900 Debit 4,500 1,400 Debit 8,900 Debit 8,900 Credit 4,500 1,400 Credit 4,500 1,400 Credit 8,900 Credit 7,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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