Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2023 , sunland ltd. schd on account 1

On January 1,2023 , Sunland Ltd. schd on account 1,100 units of its product for...

80.2K

Verified Solution

Question

Accounting

image
On January 1,2023 , Sunland Ltd. schd on account 1,100 units of its product for a total price of $549,000 with a warranty guarantee that the products were free of any defects. The products have a one-year assurance-type warranty and Sunland estimates that the cost will be $23,800. The cost of the units is $467,000. In addition, the company sold extended warranties related to 500 units for a one-year period beyond the one-year assurance period at a cost of $14,800. By the company's year-end, December 31, 2023, no warranty costs were incurred. By the company's year-end, December 31, 2024, $9.545 of warranty costs were incurred and paid in cash. Prepare the appropriate journal entries for 2023 and 2024. For the December 31, 2024 entry concerning the extended warranty, use the accounts Unearned Revenue and Warranty Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

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