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Question - Early in 2020, Bradley Company sold 500 tread mills add $6100 each. During 2020, Bradley spent 22,000 servicing the two-year assurance warranties that accompany the treadmill. All sales transactions are on a cash basis.
Required - Prepare 2020 entries for Bradley. Assume that Bradley estimate the total cost of servicing the warranties in the second year will be 30,000. If no entry is required select no entry for the account titles and enter zero for the amounts. Credit account titles are automatically indented one amount is entered.
Prepare the consolidation worksheet as at 30 June 2020, showing all entries including the corrected entries discussed in Part A
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