Sandhill Company sells televisions at an average price of $910 and also offers to each customer a separate 3-year warranty contract for $87 that requires the company to perform periodic services and to replace defective parts. During 2025, the company sold 291 televisions and 251 warranty contracts for cash. It estimates the 3-year warranty costs as $20 for parts and $40 for labor, and accounts for warranties separately. Assume sales occurred on December 31, 2025, and straight-line recognition of warranty revenues occurs. (a) Record any necessary journal entries in 2025. (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. List all debit entries before credit entries) Account Titles and Explanation Debit Credit
Sandhill Company sells televisions at an average price of $910 and also offers to each customer a separate 3-year warranty contract for $87 that requires the company to perform periodic services and to replace defective parts. During 2025, the company sold 291 televisions and 251 warranty contracts for cash. It estimates the 3-year warranty costs as $20 for parts and $40 for labor, and accounts for warranties separately. Assume sales occurred on December 31, 2025, and straight-line recognition of warranty revenues occurs. (a) Record any necessary journal entries in 2025. (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. List all debit entries before credit entries) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sandhill Company sells televisions at an average price of $910 and also offers to each customer a separate 3-year warranty contract
for $87 that requires the company to perform periodic services and to replace defective parts. During 2025, the company
sold 291 televisions and 251 warranty contracts for cash. It estimates the 3-year warranty costs as $20 for parts and $40 for labor,
and accounts for warranties separately. Assume sales occurred on December 31, 2025, and straight-line recognition of warranty
revenues occurs.
(a)
Record any necessary journal entries in 2025. (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. List all debit entries before
credit entries)
Account Titles and Explanation
Debit
Credit
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