Novak Company sold 195 color laser copiers on July 10, 2017, for $3,620 apiece,

Question

Novak Company sold 195 color laser copiers on July 10, 2017, for $3,620 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $302.

Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2017. Actual warranty costs (inventory) incurred in 2017 were $16,910. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Date

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Date Account titles and explanation Debit Credit July 10 Cash(195 × $3,620) $705,900 Sales Revenue $705,900 Warranty Expense $16,910 Inventory $16,910 Dec. 31 Warranty Expense $41,980 Warranty Liability $41,980

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

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