On September 1, 2019, Carolina Electronics Company has 1,150 Blu-ray players ready for sale. On October 1, 2019, 820 are sold, for cash, at $120 each with a 1-year assurance-type warranty Carolina estimates that the warranty cost on each Blu-ray player sold will probably average $7p unit. During the final 3 months of 2019, Carolina incurred warranty costs of $3,450, and in 2020 warranty costs were $2,290. Required: 1. Propare the journal entries for the preceding transactions. 2. Show how the preceding items would be reported on the December 31, 2019. balance sheet. 3. Prepare the journal entries for the preceding transactions using the modified cash
On September 1, 2019, Carolina Electronics Company has 1,150 Blu-ray players ready for sale. On October 1, 2019, 820 are sold, for cash, at $120 each with a 1-year assurance-type warranty Carolina estimates that the warranty cost on each Blu-ray player sold will probably average $7p unit. During the final 3 months of 2019, Carolina incurred warranty costs of $3,450, and in 2020 warranty costs were $2,290. Required: 1. Propare the journal entries for the preceding transactions. 2. Show how the preceding items would be reported on the December 31, 2019. balance sheet. 3. Prepare the journal entries for the preceding transactions using the modified cash
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 56BE
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