(b)Repeat the requirements for (a), assuming that in addition to the assurance warranty, Whispering sold an extended warranty(service-type warranty) for an additional 2 years (2022-2023) for $ 840. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCredi On January 2, 2020, Whispering Company sells production equipment to Fargo Inc. for $ 48,000. Whispering includes a 2-yearassurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020.During 2020, Whispering incurs costs related to warranties of $ 930. At December 31, 2020, Whispering estimates that $610 ofwarranty costs will be incurred in the second year of the warranty.(a)Your answer has been saved. See score details after the due date.Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020 (assuming financialstatements are prepared on December 31, 2020). (Credit account titles are automatically indented when the amount is entered. Do notindent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDebitCrediJan. 2, 2020cash48000Sales RevenueDuring 2020Warranty Expense930Cash, Labor, PartsDec. 31, 2020Warranty Expense610Warranty Liability

Journal means the book of prime entry where all entries are recorded in different pages. Ledger…

(b) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Whispering sold an extended warranty (service-type warranty) for an additional 2 years (2022-2023) for $ 840. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credi

(b) Repeat the requirements for (a), assuming that in addition to the assurance warranty, Whispering sold an extended warranty (service-type warranty) for an additional 2 years (2022-2023) for $ 840. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credi

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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