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Question - WIA is a kitchen appliance tailer, WIA provides no extra charge a 2 year warranty with it is appliance the warranty is sold separately and is estimated stand alone value of 225,000 in 2020. WIA sold appliance for 950,000 and spent 60,000 servicing warranty. It is estimated that and additional 100,000 will be spent in the future service the warranties. WIA accounts for the warranty using service type approach and recognize warranty revenue based on proportion of cost incurred out of the total estimated cost.
Required - Prepare 2020 journal entries to record
The sale of appliance with warranty?
Cost of servicing warranty?
Recognition of warranty revenue?
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