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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f0eba46-dae1-423c-b3a6-fa750c957c6f%2F80c3072d-294c-4e59-863b-d55abb14df38%2Fggu2svh_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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:
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