Question

In: Accounting

11/1/2019 Crandall Co. sold 500 solar powered snow blowers at a total price of $900,000. The...

11/1/2019

Crandall Co. sold 500 solar powered snow blowers at a total price of $900,000.

The cost of the snow blowers is $400,000.

The assurance warranties extend for a 2 year period and are estimated to cost

30,000.   Crandall also sold extended warranties (service type warranties) related

to 500 snow blowers for 2 years beyond the 2 year assurance warranty period for $40,000.

No warranty costs were incurred during 2019 for the extended warranties.

A

Prepare the journal entries at 12-31.

B

Show the presentation on the balance sheet and income statement of all relevant
  1. (Sales revenue, warranty expense, cash , unearned warranty revenue and

warranty liability).

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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