Appliance Plus sold 1,000 refrigerators during 2023 at a total price of $1,620,000, with a warranty guarantee that the product was free from any defects. The cost of the refrigerators sold was $1,080,000. The term of the assurance warranty is one year, with an estimated cost of $10,000. In addition, Appliance Plus sold extended warranties on 600 refrigerators for four years beyond the one- year period for $210,000. Instructions Prepare the journal entries to record the sale and related warranties for 2023.
Appliance Plus sold 1,000 refrigerators during 2023 at a total price of $1,620,000, with a warranty guarantee that the product was free from any defects. The cost of the refrigerators sold was $1,080,000. The term of the assurance warranty is one year, with an estimated cost of $10,000. In addition, Appliance Plus sold extended warranties on 600 refrigerators for four years beyond the one- year period for $210,000. Instructions Prepare the journal entries to record the sale and related warranties for 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Appliance Plus sold 1,000 refrigerators during 2023 at a total price of $1,620,000, with a warranty
guarantee that the product was free from any defects. The cost of the refrigerators sold was
$1,080,000. The term of the assurance warranty is one year, with an estimated cost of $10,000. In
addition, Appliance Plus sold extended warranties on 600 refrigerators for four years beyond the one-
year period for $210,000. Instructions Prepare the journal entries to record the sale and related
warranties for 2023.
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