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Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations...

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Accounting

Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading their computer systems, and it backs each notebook it sells with a 90-day warranty against defects. Based on previous experience, Computer Wholesalers expects warranty costs to be approximately 5% of sales. Sales for the month of December are $480,000. Actual warranty expenditures in January of the following year were $17,000.
Required:
Does this situation represent a contingent liability?
& 3. Record the necessary entries in the Journal Entry Worksheet below.
What is the balance in the Warranty Liability account after the entries in Parts 2 and 3?
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Req 4
Record the necessary tantries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Journal entry worksheet
1
2
>
Record the contingent liability for warranties.
Note: Enter debits before credits.
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