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Wildhorse Company sells televisions at an average price of $856 and also offers to each...

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Accounting

Wildhorse Company sells televisions at an average price of $856 and also offers to each customer a separate 3-year warranty contract for $93 that requires the company to perform periodic services and to replace defective parts. During 2025, the company sold 306 televisions and 256 warranty contracts for cash. It estimates the 3-year warranty costs as $21 for parts and $31 for labor, and accounts for warranties separately. Assume sales occurred on December 31,2025, and straight-line recognition of warranty revenues occurs.
(a)
Your answer is partially correct.
Record any necessary journal entries in 2025.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually, List all debit entries before credit entries.)
Account Titles and Explanation
Debit
Unearned Warranty Revenue
Accounts Receivable
Accounts Receivable
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