On November 9, 2020, Snowboat Snow Removal began to buy and sell snow blowers for $950 each. Snowboat uses the perpetua

[answerhappygod]

On November 9, 2020, Snowboat Snow Removal began to buy and sell
snow blowers for $950 each. Snowboat uses the perpetual
system to account for inventories. The snow blowers are
covered under a warranty that requires the company to replace any
non-working snow blower within 60 days. When a snow blower is
returned, the company simply discards it and sends a new one from
inventory to the customer. The company’s cost for a new snow
blower is $580. The manufacturer has advised the company to
expect warranty costs to equal 18% of the total units sold.
These transactions occurred in 2020 and 2021.
2020
Nov.
16
Sold 200 snowblowers each for $950.
30
Recognized warranty expense for November with adjusting
entry.
Dec.
10
Replaced 14 snowblowers that were returned under the
warranty.
20
Sold 375 snowblowers.
30
Replaced 45 snowblowers that were returned under the
warranty.
31
Recognized warranty expense for December with adjusting
entry.
2021
Jan.
6
Sold 415 snowblowers for cash.
20
Replaced 60 snowblowers that were returned under the
warranty.
31
Recognized warranty expense for January with adjusting
entry.
Required