Take me to the text Chan-Nee Enterprises sells heavy-duty lawnmower equipment. On May 11, 2020, they sold a lawnmower (on account) for $44,000 which included a 4- year unlimited warranty. The corporation's accountant estimates that $2,800 will be paid out in warranty obligations. The cost of goods sold is $17,600. Assume Chan-Nee uses a perpetual inventory system. Prepare the journal entries relating to these transactions. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit May 11 To record the sale of the lawnmower May 11 To record cost of goods sold May 11 To accrue for estimated warranty costs
Take me to the text Chan-Nee Enterprises sells heavy-duty lawnmower equipment. On May 11, 2020, they sold a lawnmower (on account) for $44,000 which included a 4- year unlimited warranty. The corporation's accountant estimates that $2,800 will be paid out in warranty obligations. The cost of goods sold is $17,600. Assume Chan-Nee uses a perpetual inventory system. Prepare the journal entries relating to these transactions. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit May 11 To record the sale of the lawnmower May 11 To record cost of goods sold May 11 To accrue for estimated warranty costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Take me to the text
Chan-Nee Enterprises sells heavy-duty lawnmower equipment. On May 11,
2020, they sold a lawnmower (on account) for $44,000 which included a 4-
year unlimited warranty. The corporation's accountant estimates that $2,800
will be paid out in warranty obligations. The cost of goods sold is $17,600.
Assume Chan-Nee uses a perpetual inventory system. Prepare the journal
entries relating to these transactions.
Do not enter dollar signs or commas in the input boxes.
Date
Account Title and Explanation
Debit
Credit
|Мay 11
To record the sale of the
lawnmower
|Мay 11
To record cost of goods sold
May 11
To accrue for estimated warranty
costs
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