Solution-What was the account balance of the account on

What was the account balance of the account on december

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Reference no: EM133145521

Question - SA Computers sells computers. The computers come with a one-year warranty. During 2019, the company sold 100,000 computers at $1,750 each. It is estimated that 2% of all units sold will need repairs under the warranty at a cost of $200 per unit.

There is an extra credit question at the end of this question.

Record the following transactions in the journal below:

Record the warranty expense for 2019.

During 2019, SA computers spends $185,000 to repair computers. Record this transaction.

At the end of 2019, SA Computers accountant reevaluates the warranty estimates. The accountant believes the actual warranty liability may be higher than the original estimate. The accountant believes an additional $75,000 should be added. Make the necessary journal entry.

If the Warranty Payable account began 2019 with a credit balance of $50,000, what was the account balance of the account on December 31, 2019?

Reference no: EM133145521

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What was the account balance of the account on december

Reference no: EM133145521

Reference no: EM133145521

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