Sunnyvale Computer Company sells a line of computers that carry a six-month warranty. Customers are offered the opportun
Posted: Wed Jul 06, 2022 6:12 am
Sunnyvale Computer Company sells a line of computers that carrya six-month warranty. Customers are offered the opportunity to buya two-year extended warranty for an additional charge. During 2024,Sunnyvale received $328,000 from customers for these extendedwarranties. All sales are on credit, and funds are received evenlythroughout the year and the warranties go into effect immediatelyafter purchase.
Required:
Prepare a summary journal entry to record sales of the extendedwarranties. Also prepare any other entries associated with thewarranties that should be recorded during 2024.
1.Record the $328,000 sale of the extended warranties.
2.Record the recognition of revenue from extended warranties forthe year ending December 31, 2024.
Required:
Prepare a summary journal entry to record sales of the extendedwarranties. Also prepare any other entries associated with thewarranties that should be recorded during 2024.
1.Record the $328,000 sale of the extended warranties.
2.Record the recognition of revenue from extended warranties forthe year ending December 31, 2024.