Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. alvarado company sells a machine for $8,000 with a

Alvarado Company sells a machine for $8,000 with a three year warranty that requires the...

70.2K

Verified Solution

Question

Accounting

image
image
Alvarado Company sells a machine for $8,000 with a three year warranty that requires the company to replace all defective parts and to provide the repair labor at no cost to the customer. During 2020, the company sold 600 machines on account. The company estimates that the repair work will cost $175 for parts and $100 in labor cost (in cash) as an average cost under the warranty period per machine During 2020, 60 machines were returned for repair work. As of the end of the year, the company estimates that another 100 machines will need repair work over the remaining life of the warranty at the same cost. Instruction: 1 Prepared the journal entry to the sale of the machines

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!
Become a Member

Other questions asked by students