3. Ribbon Enterprises sells computers with an embedded 2-year warranty. They also offered an extended...
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3. Ribbon Enterprises sells computers with an embedded 2-year warranty. They also offered an extended warranty for the 3rd year, for $10. In 2014, Ribbon sold 3,000 computers for $400 each, with 50 customers purchasing the 3rd year extended warranty. Ribbon estimates that 4 percent will need to be repaired at an average cost of $20 each. In 2015, repairs in the amount of $2,500 were made. In the 30d year, $260 of repairs were made. Make the following journal entries: a. to record the sale of the computers b. to record the embedded & extended warranties c. to record all of the repairs
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