Exercise 13-11 Early in 2017, Marigold Equipment Company sold 600 Rollomatics du
ID: 2589080 • Letter: E
Question
Exercise 13-11
Early in 2017, Marigold Equipment Company sold 600 Rollomatics during 2017 at $5,600 each. During 2017, Marigold spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.
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Exercise 13-11
Early in 2017, Marigold Equipment Company sold 600 Rollomatics during 2017 at $5,600 each. During 2017, Marigold spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.
Explanation / Answer
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Date Account Titles and Explanation Debit Credit At sale during 2017 Cash (600 x $5600) 3360000 Sales revenue 3360000 (To record sale of equipment) Dec 31, 2017 Warranty expense 58000 Warranty payable 58000 (To record warranty expense) Dec 31, 2017 Warranty payable 20000 Cash 20000 (To record warranty costs incurred)Related Questions
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