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:

Opportunity Cost

The price paid when you choose one option over another, effectively missing out on what the second best choice would have offered.

Italy

A country in Southern Europe known for its rich history, culture, and contributions to art, science, fashion, and cuisine.

Art Books

Publications that specifically focus on the visual arts, including but not limited to collections of art works, histories, and critical analyses.

Italy

A European country known for its rich history, culture, and contributions to art, science, fashion, and cuisine, shaped by a long Mediterranean coastline and distinguished cities.