Jane Company extends a warranty on children's tablets. They estimate that 3% of tablets will need to be replaced. The sales price of one tablet is $200 and the cost is $100. Total tablet sales were 10,000 tablets for $2,000,000 in 2020. On February 14, 2021, Jane company replaced 30 tablets under warranty. REQUIRED: 1. Prepare the necessary adjusting entry on December 31, 2020 below: 2. Prepare the necessary journal entry on February 14, 2021 below:

Jane Company extends a warranty on children's tablets. They estimate that 3% of tablets will need to be replaced. The sales price of one tablet is $200 and the cost is $100. Total tablet sales were 10,000 tablets for $2,000,000 in 2020. On February 14, 2021, Jane company replaced 30 tablets under warranty. REQUIRED: 1. Prepare the necessary adjusting entry on December 31, 2020 below: 2. Prepare the necessary journal entry on February 14, 2021 below:

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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