on January 3, 2022, Big company sells equipment to Small inc for $100,000 cash. The sale includes a 1-year assurance warranty service with the sale of the equipment. In addition to the assurance warranty Big sold an extended warranty for an additional two years for $1,600 cash. Prepare the entry to record this transaction.
on January 3, 2022, Big company sells equipment to Small inc for $100,000 cash. The sale includes a 1-year assurance warranty service with the sale of the equipment. In addition to the assurance warranty Big sold an extended warranty for an additional two years for $1,600 cash. Prepare the entry to record this transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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on January 3, 2022, Big company sells equipment to Small inc for $100,000 cash. The sale includes a 1-year assurance warranty service with the sale of the equipment. In addition to the assurance warranty Big sold an extended warranty for an additional two years for $1,600 cash.
Prepare the entry to record this transaction.
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