Honest Computers Sells Computers with a 6-Month Warranty

question 82

Essay

Honest Computers sells computers with a 6-month warranty.In January,the company sold 35,000 computers at $2,600 each and 1,500 computers were returned for repairs.The total repair costs amounted to $185,000.It is estimated that 3% of all units sold will need repairs under warranty at an estimated cost of $300 per unit.Prepare the journal entry to record warranty expense for January.

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Definitions:

Assembly Languages

Low-level programming languages which are closely related to machine code, but use symbolic code to represent operations and addresses.

Second-Generation

Refers to the second iteration or version of a product or technology, often bringing improvements over the first generation.

Bottom-Up Design

A design strategy that starts with creating small parts or components and then integrates them into larger systems.

High-Level Tasks

Complex or abstract activities that require significant planning, thinking, or problem-solving skills, typically involving multiple steps or decisions.