A Company Sells Computers with a 6-Month Warranty

question 2

Essay

A company sells computers with a 6-month warranty. In January, the company sold 100,000 computers at $1,750 each; and 1,500 computers were turned in for repairs during that same month. The total repairs amounted to $185,000 costs from the computer parts inventory. It is estimated that 2% of all units sold will need repairs under warranty at an estimated cost of $200 per unit. Prepare the journal entries to record (a) estimated warranty expense for January and (b) warranty repair costs for January.

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Definitions:

World Intellectual Property Organization

A specialized agency of the United Nations that oversees and promotes the protection of intellectual property rights across the world.

Lanham Act

The primary federal statute governing trademarks, service marks, and unfair competition, in the United States.

Harvard Software

Harvard Software is likely a reference to software developed or managed at Harvard University, though it's not a widely recognized term outside specific contexts.

Trademark

A legally acknowledged or traditionally used mark, wording, or set of words that identifies a business or its goods.