Selected information related to warranties provided by IBM follows (in millions of U.S. dollars): Net revenues Standard warranty liability, end of year Charges incurred during the year Extended warranty deferred revenue, end of year Revenue deferred for new extended warranty contracts 2018 2017 2016 $81,591 $81,139 $81,919 158 163 573 260 192 205 606 307 196 204 571 303
Selected information related to warranties provided by IBM follows (in millions of U.S. dollars): Net revenues Standard warranty liability, end of year Charges incurred during the year Extended warranty deferred revenue, end of year Revenue deferred for new extended warranty contracts 2018 2017 2016 $81,591 $81,139 $81,919 158 163 573 260 192 205 606 307 196 204 571 303
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 14EA: Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1,...
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Question
![5-a. Compute the extended warranty revenue recognized during 2017 and 2018. (Enter your answers in millions of dollars.)
Extended Warranty revenue
View transaction list
5-b. Prepare the journal entry to record the revenue recognized in 2018. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field. Enter your answers in millions of dollars.)
No
1
2018
2017
Transaction
A
View journal entry worksheet
General Journal
Extended warranty deferred revenue
Extended warranty revenue
Debit
Credit
Ⓒ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62bb9d35-5761-4b13-9e4c-6b46c44d79be%2F510479dc-087e-4fac-a136-db7c07795b27%2Fcigain7_processed.png&w=3840&q=75)
Transcribed Image Text:5-a. Compute the extended warranty revenue recognized during 2017 and 2018. (Enter your answers in millions of dollars.)
Extended Warranty revenue
View transaction list
5-b. Prepare the journal entry to record the revenue recognized in 2018. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field. Enter your answers in millions of dollars.)
No
1
2018
2017
Transaction
A
View journal entry worksheet
General Journal
Extended warranty deferred revenue
Extended warranty revenue
Debit
Credit
Ⓒ
![Selected information related to warranties provided by IBM follows (in millions of U.S. dollars):
Net revenues
Standard warranty liability, end of year
Charges incurred during the year
Extended warranty deferred revenue, end of year
Revenue deferred for new extended warranty contracts
2018
2017
2016
$81,591 $81,139 $81,919
158
163
573
260
192
205
606
307
196
204
571
303](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62bb9d35-5761-4b13-9e4c-6b46c44d79be%2F510479dc-087e-4fac-a136-db7c07795b27%2Fmfebcu_processed.png&w=3840&q=75)
Transcribed Image Text:Selected information related to warranties provided by IBM follows (in millions of U.S. dollars):
Net revenues
Standard warranty liability, end of year
Charges incurred during the year
Extended warranty deferred revenue, end of year
Revenue deferred for new extended warranty contracts
2018
2017
2016
$81,591 $81,139 $81,919
158
163
573
260
192
205
606
307
196
204
571
303
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