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Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2017. During December, Superior sold 6,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38. ques-  Superior needs to record previously unrecorded cash sales of $2,100,000 (cost of sales 65%) plus applicable HST. Form journal entry.

Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2017. During December, Superior sold 6,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38. ques-  Superior needs to record previously unrecorded cash sales of $2,100,000 (cost of sales 65%) plus applicable HST. Form journal entry.

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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Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2017. During December, Superior sold 6,500 skateboards that carry a 60-day warranty. The skateboard sales totalled $390,000. The company expects 8% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $38.

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Superior needs to record previously unrecorded cash sales of $2,100,000 (cost of sales 65%) plus applicable HST. Form journal entry.

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