Prepare the journal entries that are related to the sales and warranty in Year1 for Incorporation L.

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XYZ Computers manufactures and sells moblile tokens and radio token systems which include a 180 day warranty on product defects. It also sells an extended warranty which provides an additional two years of protection. On May 10, the company sold a token system for $3,850 and an extended warranty for another $1,200. The journal entry to record this transaction by XYZ would include Select one: O a. a debit to Prepaid Service Revenue of $1,200 O b. a credit to Sales Revenue of $5,020 O c.a credit to Unearned Service Revenue of $1200. O d. a credit to Service Revenue of $5,050

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Chapter 9, Problem 10RE

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Prepare the journal entries that are related to the sales and warranty in Year1 for Incorporation L.

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XYZ Computers manufactures and sells moblile tokens and radio token systems which include a 180 day warranty on product defects. It also sells an extended warranty which provides an additional two years of protection. On May 10, the company sold a token system for $3,850 and an extended warranty for another $1,200. The journal entry to record this transaction by XYZ would include Select one: O a. a debit to Prepaid Service Revenue of $1,200 O b. a credit to Sales Revenue of $5,020 O c.a credit to Unearned Service Revenue of $1200. O d. a credit to Service Revenue of $5,050

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