Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of December are $580,000. Actual warranty expenditures in January of the following year were $22,000. Required: 1. Record warranty expense and warranty Sability for the month of December based on 4% of sales. 2. Record the payment of the actual warranty expenditures of $22,000 in January of the following year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the payment of the actual warranty expenditures of $22,000 in January of the following year. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. View transaction list Journal entry worksheet 1 Record the actual warranty expenditures. Note: Enter debits before credits Transaction 1 General Journal Clear entry Debit Credit Vieweneral Int

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations
upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous
experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of December are
$580,000. Actual warranty expenditures in January of the following year were $22,000.
Required:
1. Record warranty expense and warranty liability for the month of December based on 4% of sales.
2. Record the payment of the actual warranty expenditures of $22,000 in January of the following year.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Record the payment of the actual warranty expenditures of $22,000 in January of the following year.
Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.
View transaction list
Journal entry
worksheet
1
Record the actual warranty expenditures.
Note: Enter debits before credits
Transaction
Recordantry
General Journal
Clear entry
Debit Credit
View general journal
Transcribed Image Text:Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 4% of sales. Sales for the month of December are $580,000. Actual warranty expenditures in January of the following year were $22,000. Required: 1. Record warranty expense and warranty liability for the month of December based on 4% of sales. 2. Record the payment of the actual warranty expenditures of $22,000 in January of the following year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the payment of the actual warranty expenditures of $22,000 in January of the following year. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. View transaction list Journal entry worksheet 1 Record the actual warranty expenditures. Note: Enter debits before credits Transaction Recordantry General Journal Clear entry Debit Credit View general journal
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