How do make the journal entries that crane should make

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Crane Company sold 15,000 Super Spreaders on July 1, 2020, at a total price of $2,050,000, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $780,000. The assurance warranties extend for a two-year period and are estimated to cost $47,500. Crane also sold extended warranties (service-type warranties) related to 2,500 spreaders for two years beyond the two-year period for $10,500.

Problem 1: Make the journal entries that Crane should make in 2020 related to the sale and the related warranties.

Reference no: EM132668381

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