Buffalo Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2020, the corporation sells for cash 427 computers at a unit price of $2,730. On the basis of past experience, the 2-year warranty costs are estimated to be $166 for parts and $196 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2020.) The warranty is not sold separately from the computer. (a) Your answer has been saved. See score details after the due date. Record any necessary journal entries in 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Cash Warranty Expense Sales Revenue Warranty Liability Debit 1,165,170 154,574 Credit 1,165,170 154,574
Buffalo Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2020, the corporation sells for cash 427 computers at a unit price of $2,730. On the basis of past experience, the 2-year warranty costs are estimated to be $166 for parts and $196 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2020.) The warranty is not sold separately from the computer. (a) Your answer has been saved. See score details after the due date. Record any necessary journal entries in 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Cash Warranty Expense Sales Revenue Warranty Liability Debit 1,165,170 154,574 Credit 1,165,170 154,574
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dineshbhai
Transcribed Image Text:Buffalo Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to
provide the necessary repair labor. During 2020, the corporation sells for cash 427 computers at a unit price of $2,730. On the basis of
past experience, the 2-year warranty costs are estimated to be $166 for parts and $196 for labor per unit. (For simplicity, assume that
all sales occurred on December 31, 2020.) The warranty is not sold separately from the computer.
(a)
Your answer has been saved. See score details after the due date.
Record any necessary journal entries in 2020. (If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation
Cash
Warranty Expense
Sales Revenue
Warranty Liability
Debit
1,165,170
154,574
Credit
1,165,170
154,574
Attempts: 1 of 1 used
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