New Age Computers Manufactures and Sells Pagers and Radio Paging

question 19

Multiple Choice

New Age Computers manufactures and sells pagers and radio paging 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, it sold a paging system for $3,850 and an extended warranty for another $1,200.The journal entry to record this transaction would include

• A)a credit to Service Revenue of $5,050.
• B)a credit to Service Revenue of $1,200
• C)a credit to Sales of $3,850 and a credit to Service Revenue of $1,200
• D)a credit to Unearned Service Revenue of $1,200.

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Definitions:

Teleost

A large group of fish characterized by a movable jaw and a bony skeleton, with over half of all known fish species classified as teleosts.

Shark

A group of elasmobranch fish characterized by their cartilaginous skeletons, five to seven gill slits on the sides of the head, and pectoral fins that are not fused to the head.

Tuna

A species of saltwater fish that belongs to the tribe Thunnini, a subgrouping of the mackerel family.

Extant Mammal Groups

Currently living mammalian groups, such as marsupials, rodents, and primates, that have differentiated into distinct species through evolution.