Exercise 1310 Pearl Company sold 180 color laser copiers on

Exercise 13-10

Pearl Company sold 180 color laser copiers on July 10, 2017, for $3,810 apiece, together with a 1-year warranty. Maintenance on each copier during the warranty period is estimated to be $309.

Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2017. Actual warranty costs (inventory) incurred in 2017 were $17,600. (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.)

Date

Account Titles and Explanation

Debit

Credit

Date	Account Titles and Explanation	Debit	Credit
$\"\"$ Jul. 10, 2017During 2017Dec. 31, 2017	$\"\"$	$\"\"$	$\"\"$
	$\"\"$	$\"\"$	$\"\"$
$\"\"$ Jul. 10, 2017During 2017Dec. 31, 2017	$\"\"$	$\"\"$	$\"\"$
	$\"\"$	$\"\"$	$\"\"$
$\"\"$ Jul. 10, 2017During 2017Dec. 31, 2017	$\"\"$	$\"\"$	$\"\"$
	$\"\"$	$\"\"$	$\"\"$

Solution

Journal entries:

Date	Account titles	Debit	Credit
July 10.	Cash(180×$3810)	$685,800
	Sales revenue		$685,800
	(To record sales of copiers)
Dec 31,2017	Warranty expense	$17,600
	Inventory		$17,600
	(To record actual warranty Expense Incurred)
Dec 31,2016	Warranty expense {(180×$309)-$17,600}	$38,020
	Warranty liability		$38,020
	(To record accrued liability)

Exercise 13-10 Pearl Company sold 180 color laser copiers on July 10, 2017, for $3,810 apiece, together with a 1-year warranty. Maintenance on each copier durin

Exercise 1310 Pearl Company sold 180 color laser copiers on

Solution

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