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:

Tetrapods

Vertebrate animals having four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.

Lineages

Refers to lines of descent or ancestral sequences, often traced through generations of organisms to study evolutionary relationships.

Earth Formed

Refers to the origin and development of the planet Earth from the solar nebula approximately 4.6 billion years ago.

Billion Years Ago

A time scale used in geology and astronomy to describe events or conditions that happened a billion or more years prior to the present.