Pearl Company sold 218 color laser copiers on July 10-2025, for $3,690 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $315. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $18,670. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries) Account Titles and Explanation Date 10, 2025 uring 2025 ec 31,2025 v Accounts Receivable Sales Revenue (To record sales) Warranty Expense Warranty Liability (To record payment for warranty costs incurred) Warranty Llability Cash (To record estimated warranty expense and warranty liability for expected warranty claims) Debit 804420 10 00 68670 18670 Credit 804420 68670 18670

Pearl Company sold 218 color laser copiers on July 10-2025, for $3,690 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $315. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $18,670. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries) Account Titles and Explanation Date 10, 2025 uring 2025 ec 31,2025 v Accounts Receivable Sales Revenue (To record sales) Warranty Expense Warranty Liability (To record payment for warranty costs incurred) Warranty Llability Cash (To record estimated warranty expense and warranty liability for expected warranty claims) Debit 804420 10 00 68670 18670 Credit 804420 68670 18670

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Similar questions

Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms of the note show a maturity date of 36 months, and an annual interest rate of 8%. What is the accumulated interest entry if 9 months have passed since note establishment?
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Marigold Company sold 214 color laser copiers on July 10, 2025, for $3,800 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $303. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $17,400. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) Date Account Titles and Explanation (To record sales) (To record payment for warranty costs incurred) (To record estimated warranty expense and warranty liability for expected warranty claims) Debit Credit
Stellar Company sold 201 color laser copiers on July 10, 2025, for $4,230 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $333. Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2025. Actual warranty costs (inventory) incurred in 2025 were $16,250. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.) Date Account Titles and Explanation (To record sales) (To record payment for warranty costs incurred) (To record estimated warranty expense and warranty liability for expected warranty claims) Debit Credit
Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $330. Instructions Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2020. Actual warranty costs (inventory) incurred in 2020 were $17,000.
On January 1, 2020, Sheridan Ltd. sold on account 800 units of its product for a total price of $575,000 and a cost of $493,000. The products have a one-year assurance-type warranty and Sheridan estimates that the cost will be $23,000. By the company’s year-end December 31, 2020, actual warranty costs related to the products sold was $18,500, paid in cash.Prepare all appropriate journal entries including the sale of merchandise. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit January 1/20 (To record the sale) January 1/20December 31/20 (To record the cost of goods sold)…
Concord Factory provides a 2-year warranty with one of its products which was first sold in 2020. Concord sold $930,400 of products subject to the warranty. Concord expects $124,050 of warranty costs over the next 2 years. In that year, Concord spent $70,460 servicing warranty claims. Prepare Concord's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date 2020 During 2020 12/31/20 Account Titles and Explanation Cash Sales Revenue (To record sales) Warranty Expense Warranty Liability (To record warranty claims) Warranty Liability Cash Debit 930400 il 70460 124050 Credit 930400 lil 70460 124050
On January 1, 2023, Sheridan Ltd. sold on account 800 units of its product for a total price of $549,000 and a cost of $477,000. The products have a one-year assurance-type warranty and Sheridan estimates that the cost will be $25,800. By the company's year-end December 31, 2023, actual warranty costs related to the products sold was $18,400, paid in cash. Prepare all appropriate journal entries including the sale of merchandise. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Windsor Factory provides a 2-year warranty with one of its products which was first sold in 2025. Windsor sold $940,900 of products subject to the warranty. Windsor expects $122,010 of warranty costs over the next 2 years. In that year, Windsor spent $74,460 servicing warranty claims. Prepare Windsor's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation During 2025 12/31/25 (To record payment for warranty costs incurred) (To record sales) Debit Credit ||||| [[[
On January 1, 2023, Sheridan Ltd. sold on account 800 units of its product for a total price of $575,000 and a cost of $493,000. The products have a one-year assurance-type warranty and Sheridan estimates that the cost will be $23,000. By the company's year-end December 31, 2023, actual warranty costs related to the products sold was $18,500, paid in cash. Prepare all appropriate journal entries including the sale of merchandise. (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. Record journal entries in the order presented in the problem.) Date January 1/23 January 1/23 December 31/23 Account Titles and Explanation Accounts Receivable Warranty Expense Sales Revenue Unearned Revenue (To record the sale) Cost of Goods Sold Inventory (To record the cost of goods sold) Unearned Revenue Warranty…
Martinez Factory provides a 2-year warranty with one of its products which was first sold in 2025. Martinez sold $909,800 of products subject to the warranty. Martinez expects $124,480 of warranty costs over the next 2 years. In that year, Martinez spent $73,090 servicing warranty claims. Prepare Martinez's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. List all debit entries before credit entries.) Date During 2025 12/31/25 Account Titles and Explanation (To record payment for warranty costs incurred) (To record sales) Debit Credit 20
Pearl Factory provides a 2-year warranty with one of its products which was first sold in 2025. Pearl sold $1,010,100 of products subject to the warranty. Pearl expects $113,910 of warranty costs over the next 2 years. In that year, Pearl spent $63,100 servicing warranty claims. Prepare Pearl's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)