A Company Sells Personal Computers,with an Included Two-Year Warranty for $2,300

question 64

Essay

A company sells personal computers,with an included two-year warranty for $2,300 each.During the current year,the company sells 400 computers.On the basis of past experience,the warranty costs are estimated to be $250 per computer.The actual warranty costs (paid in cash) by the company during the current year were $65,000.Prepare general journal entries to record the
(a) estimated warranty expense and
(b) warranty repair costs during current year.

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Definitions:

Eisenhower Administration

The presidency of Dwight D. Eisenhower, the 34th President of the United States, which lasted from 1953 to 1961, notable for its moderate conservative domestic and foreign policies.

Concept of Liberation

Encompasses the fight for freedom from oppression or occupation, often associated with social, political, or economic movements.

Suez Crisis

A diplomatic and military conflict in 1956 involving Egypt, Israel, France, and the United Kingdom, centered on the control of the Suez Canal.

Korean War

A conflict between North Korea (with the support of China and the Soviet Union) and South Korea (with the support of the United Nations, primarily the United States) from 1950 to 1953, part of the Cold War framework.