On January 1, 2023, Carla Vista Ltd. sold on account 800 units of its product for a total price of $569,000 and a cost of $475,000. The products have a one-year assurance-type warranty and Carla Vista estimates that the cost will be $26,200. By the company's year-end December 31, 2023, actual warranty costs related to the products sold was $19.600, paid in cash. Prepare all appropriate journal entries including the sale of merchandise. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date January 1/23 January 1/23 December 31/23 v Account Titles and Explanation Accounts Receivable Warranty Expense Sales Revenue (To record the sale) (To record the cost of goods sold) Debit Credit

On January 1, 2023, Carla Vista Ltd. sold on account 800 units of its product for a total price of $569,000 and a cost of $475,000. The products have a one-year assurance-type warranty and Carla Vista estimates that the cost will be $26,200. By the company's year-end December 31, 2023, actual warranty costs related to the products sold was $19.600, paid in cash. Prepare all appropriate journal entries including the sale of merchandise. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date January 1/23 January 1/23 December 31/23 v Account Titles and Explanation Accounts Receivable Warranty Expense Sales Revenue (To record the sale) (To record the cost of goods sold) Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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On January 1, 2023, Sheridan Ltd. sold on account 800 units of its product for a total price of $575,000 and a cost of $493,000. The products have a one-year assurance-type warranty and Sheridan estimates that the cost will be $23,000. By the company's year-end December 31, 2023, actual warranty costs related to the products sold was $18,500, paid in cash. Prepare all appropriate journal entries including the sale of merchandise. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date January 1/23 January 1/23 December 31/23 Account Titles and Explanation Accounts Receivable Warranty Expense Sales Revenue Unearned Revenue (To record the sale) Cost of Goods Sold Inventory (To record the cost of goods sold) Unearned Revenue Warranty…
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