Sunnyvale Computer Company Sells a Line of Computers That Carry

question 78

Essay

Sunnyvale Computer Company sells a line of computers that carry a 6-month warranty. Customers are offered the opportunity to buy a 2-year extended warranty for an additional charge. During 2009, Sunnyvale received $320,000 from customers for these extended warranties. All sales are on credit, and funds are received evenly throughout the year and the warranties go into effect immediately after purchase.
Required:
Prepare a summary journal entry to record sales of the extended warranties. Also prepare any other entries associated with the warranties that should be recorded during 2009.

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Definitions:

Positive Adjustment

The process of effectively coping with change, challenges, or adversity, leading to a state of psychological well-being.

Sexually Abused

A term describing individuals who have been subjected to unwanted or forced sexual activity.

Caring Adults

Individuals who play a significant, positive role in a child's or young person's life, offering support, guidance, and nurturing.

Child Sexual Abuse

Any sexual act, invitation to sexual touching, or exploitation by an adult or older adolescent towards a child.