11 & 12 Computer Wholesalers restores and resells notebook computers. It originally acquires...
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Accounting
11 & 12
Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $510,000. Actual warranty expenditures in January of the following year were $18,500.
11- 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
12- 4. What is the balance in the Warranty Liability account after the entries in Part 2 and 3?
2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transacti View transaction list Journal entry worksheet 2 Record the contingent liability for warranties. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
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