Riverbed Company sold 9,300 Super-Spreaders on December 31, 2017, at a total pri

Question

Riverbed Company sold 9,300 Super-Spreaders on December 31, 2017, at a total price of $902,100, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $558,000. The assurance warranties extend for a 2-year period and are estimated to cost $43,900. Riverbed also sold extended warranties (service-type warranties) related to 2,100 spreaders for 2 years beyond the 2-year period for $12,600. Given this information, determine the amounts to report for the following at December 31, 2017: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash.

Amounts Reported in Income Sales revenue $

Warranty Expense

Amounts Reported on the Balance Sheet Unearned Service Revenue $

Cash

Warranty Liability

Explanation / Answer

Amounts Reported in Income Sales revenue 902100 Warranty Expense 43900 Amounts Reported on the Balance Sheet Unearned Service Revenue 12600 Cash 914700 (902100 + 12600) Warranty Liability 43900

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.