Prepare journal entries to record the estimated warranty


A company sells personal computers for $2,300 each. The price includes a two-year warranty. During the current year, the company sells 400 computers. On the basis of the past experiences, the warranty costs are estimated to $230 per computer. The actual warranty costs  by the company during the current year were $65,000. a.) Prepare journal entries to record the estimated warranty expense. b.) Prepare journal entries to record the warranty repair costs during the current year.

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Accounting Basics: Prepare journal entries to record the estimated warranty
Reference No:- TGS0554809

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