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Sheridan Company sold 1,070 Rollomatics on December 31, 2023, at a total price of $8.1 million, with a warranty guarantee that the product was free from any defects. The cost of Rollomatics sold is $4.0 million. The term of the assurance warranty is two years, with an estimated cost of $32,100. In addition, Sheridan sold extended warranties on 445 Rollomatics for three years beyond the two-year period for $13,350. What journal entries should Sheridan make in 2023 for the sale and the related warranties? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles (To record the revenue and liabilities) (To record cost of goods sold) Debit Credit

Sheridan Company sold 1,070 Rollomatics on December 31, 2023, at a total price of $8.1 million, with a warranty guarantee that the product was free from any defects. The cost of Rollomatics sold is $4.0 million. The term of the assurance warranty is two years, with an estimated cost of $32,100. In addition, Sheridan sold extended warranties on 445 Rollomatics for three years beyond the two-year period for $13,350. What journal entries should Sheridan make in 2023 for the sale and the related warranties? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles (To record the revenue and liabilities) (To record cost of goods sold) Debit Credit

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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Sheridan Company sold 1,070 Rollomatics on December 31, 2023, at a total price of $8.1 million, with a warranty guarantee that the product was free from any defects. The cost of Rollomatics sold is $4.0 million. The term of the assurance warranty is two years, with an estimated cost of $32,100. In addition, Sheridan sold extended warranties on 445 Rollomatics for three years beyond the two-year period for $13,350. What journal entries should Sheridan make in 2023 for the sale and the related warranties? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles (To record the revenue and liabilities) (To record cost of goods sold) Debit Credit
Transcribed Image Text:Sheridan Company sold 1,070 Rollomatics on December 31, 2023, at a total price of $8.1 million, with a warranty guarantee that the product was free from any defects. The cost of Rollomatics sold is $4.0 million. The term of the assurance warranty is two years, with an estimated cost of $32,100. In addition, Sheridan sold extended warranties on 445 Rollomatics for three years beyond the two-year period for $13,350. What journal entries should Sheridan make in 2023 for the sale and the related warranties? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles (To record the revenue and liabilities) (To record cost of goods sold) Debit Credit
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