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What would be the answer? The answer $21,404 is incorrect.

It says to estimate the revenues to be recognized on a straight-line basis.

What would be the answer? The answer $21,404 is incorrect.

It says to estimate the revenues to be recognized on a straight-line basis.

Question 5 0.89/1 Early in 2017, Whispering Equipment Company sold 500 Rollomatics during 2017 at $6,300 each. During 2017, Whispering spent $ 21,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Your answer is partially correct Prepare 2017 entries for Whispering. Assume that Whispering estimates the total cost of servicing the warranties will be $ 52,000 for 2 years. (lf no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit At Sale Cash 3150000 Sales Revenue 3150000 During 2017 / | | Warranty Expense 21000 Cash 21000 Dec. 31, 2017Warranty Expense 31000 Warranty Liability 31000 List of Accounts Your answer is partially correct. Prepare 2017 entries for Whispering assuming that the warranties are not an integral part of the sale (a service-type warranty). Assume that of the sales total, $ 53,000 relates to sales of warranty contracts. Whispering estimates the total cost of servicing the warranties will be $52,000 for 2 years. Estimate revenues to be recognized on a straight-line basis. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually Round intermediate calculations to 5 decimal places, e.g. 1.54657 answers to O decimal places, e.g. 5,125) Date Account Titles and Explanation Debit Credit During 2017 Cash 3150000 Sales Revenue 3097000 Unearned Warranty Revenue 53000 During 2017 v Warranty Expense 21000 Cash 21000 Dec. 31, 2017 Unearned Warranty Revenue 21404 Warranty Revenue 21404 To record warranty revenue) List of Accounts

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