Blossom Company sold 10,400 Super-Spreaders on December 31, 2025, at a total price of $956,800, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $582,400. The assurance warranties extend for a 2-year period and are estimated to cost $43,000. Blossom also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2025: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Net Income Amounts Reported on the Balance Sheet $ AA

Blossom Company sold 10,400 Super-Spreaders on December 31, 2025, at a total price of $956,800, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $582,400. The assurance warranties extend for a 2-year period and are estimated to cost $43,000. Blossom also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2025: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Net Income Amounts Reported on the Balance Sheet $ AA

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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