Sales warranty accrual method


Prince sells a certain product for $20,000. Included in this price is an implied service contract of $800. Fifty machines were sold in 2010. Warranty expense incurred during 2010 amounted to $25,000. The company uses the sales warranty accrual method. Which entry would probably not be made in 2010?

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Accounting Basics: Sales warranty accrual method
Reference No:- TGS047029

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