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Pearl Company sold 218 color laser copiers on July 10-2025, for $3,690 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $315. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $18,670. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries) Account Titles and Explanation Date 10, 2025 uring 2025 ec 31,2025 v Accounts Receivable Sales Revenue (To record sales) Warranty Expense Warranty Liability (To record payment for warranty costs incurred) Warranty Llability Cash (To record estimated warranty expense and warranty liability for expected warranty claims) Debit 804420 10 00 68670 18670 Credit 804420 68670 18670

Pearl Company sold 218 color laser copiers on July 10-2025, for $3,690 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $315. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $18,670. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries) Account Titles and Explanation Date 10, 2025 uring 2025 ec 31,2025 v Accounts Receivable Sales Revenue (To record sales) Warranty Expense Warranty Liability (To record payment for warranty costs incurred) Warranty Llability Cash (To record estimated warranty expense and warranty liability for expected warranty claims) Debit 804420 10 00 68670 18670 Credit 804420 68670 18670

FINANCIAL ACCOUNTING
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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Pearl Company sold 218 color laser copiers on July 10-2025, for $3,690 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $315. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $18,670. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries) Account Titles and Explanation Date 10, 2025 uring 2025 ec 31,2025 v Accounts Receivable Sales Revenue (To record sales) Warranty Expense Warranty Liability (To record payment for warranty costs incurred) Warranty Llability Cash (To record estimated warranty expense and warranty liability for expected warranty claims) Debit 804420 10 00 68670 18670 Credit 804420 68670 18670
Transcribed Image Text:Pearl Company sold 218 color laser copiers on July 10-2025, for $3,690 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $315. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $18,670. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries) Account Titles and Explanation Date 10, 2025 uring 2025 ec 31,2025 v Accounts Receivable Sales Revenue (To record sales) Warranty Expense Warranty Liability (To record payment for warranty costs incurred) Warranty Llability Cash (To record estimated warranty expense and warranty liability for expected warranty claims) Debit 804420 10 00 68670 18670 Credit 804420 68670 18670
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