Applebee sells speakers with a 6 month manufacturer’s warranty.At the time of purchase, customers...

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Accounting

Applebee sells speakers with a 6 month manufacturer’s warranty.At the time of purchase, customers also have an opportunity to buyan extended 1 year warranty. In Year 1 Applebee sold $40,000 ofspeakers and $12,000 of extended warranties. All sales are creditsales and sales occurred evenly during the year. Applebee is acalendar year entity that records AJE’s and produces financialstatements only at year-end.
Make a summary JE to record Year 1 sales.
Make the related AJE needed at the end of Year 1.
Please show all work for calculations. Thank you.

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Since the entity sales are even and they are preparing the financials at the end of the year so this is important that their PL looks even also this means that every month should have same amount of sales as their sales are even So sales for the year is of 40000 this means if we divide 40000 by 12 months we get 3333 as sales are even See Answer

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In: AccountingApplebee sells speakers with a 6 month manufacturer’s warranty.At the time of purchase, customers also...Applebee sells speakers with a 6 month manufacturer’s warranty.At the time of purchase, customers also have an opportunity to buyan extended 1 year warranty. In Year 1 Applebee sold $40,000 ofspeakers and $12,000 of extended warranties. All sales are creditsales and sales occurred evenly during the year. Applebee is acalendar year entity that records AJE’s and produces financialstatements only at year-end.Make a summary JE to record Year 1 sales.Make the related AJE needed at the end of Year 1.Please show all work for calculations. Thank you.