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Main Company sells 100 televisions on January 1, 2017, at a total price of €40,000 with...

Main Company sells 100 televisions on January 1, 2017, at a total price of €40,000 with a warranty guarantee that the product was free of any defects. The assurance warranties extend for a 2-year period and are estimated to cost €500.
Main also sold extended warranties for €800 related to the televisions covering 2 additional years beyond the assurance warranty period. Actual warranty costs were €150 in 2017 and €350 in 2018.
Prepare the journal entries that Main should make in:
1. January 1, 2017 related to the sale of the televisions and related warranties.
2. December 2017 for the €150 warranty costs incurred
3. December 2018 for the €350 warranty costs incurred
4. December 2019 and 2020 for the recognized additional (service-type) warranty.

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jeff jeffy answered 1 year ago
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