Prepare leppard journal entries

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Leppard Corporation sells DVD players. The corporation also offers its customers a 2-year warranty contract. During 2012, Leppard sold 20,000 warranty contracts at $103.80 each. The corporation spent $190,000 servicing warranties during 2012, and it estimates that an additional $950,000 will be spent in the future to service the warranties.

Prepare Leppard's journal entries for (a) the sale of contracts, (b) the cost of servicing the warranties, and (c) the recognition of warranty revenue. (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. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 2,520.)

Reference no: EM13128403

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