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A Company Sells Computers with a 6-Month Warranty

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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.


Definitions:

Sex

The biological components—chromosomal, chemical, and anatomical—that are associated with males and females.

Gender

A social construct that refers to a set of social roles, attitudes, and behaviours that describe people of different sexes.

Matriarchal Society

A society or organization wherein female leaders predominate, particularly in terms of social power and authority.

Functional Society

A society that operates effectively due to the well-structured interrelation of its institutions and practices meeting the needs of its members.

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