In April 2019, Black & White Co. sold 10,000 gadgets at a selling price of...
80.2K
Verified Solution
Link Copied!
Question
Accounting
In April 2019, Black & White Co. sold 10,000 gadgets at a selling price of $140 each. The cost of the gadgets was $40.00 each. The merchandise was covered by a 180-day warranty. Warranty expenses are expected to be 10% of the cost of each item sold. Black & White Co. use perpetual inventory. On May 8, the company paid an outside vendor to provide warranty service on 10 items that were sold in April In May, total sales were 12,000 units. On June 14, the company paid an outside vendor to provide warranty service on 15 items that were sold in May. Required: Please journalize the following and ignore HST: Sales for April the entry should be dated April 30. The warranty expense to be recognized for April (date it April 30). The warranty work done on May 8th. Sales for May- the entry should be dated May 31. The warranty expense to be recognized for May (date it May 31). The warranty work done on June 14
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
