On January 1, 2023, Sunland Ltd. scd 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 account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
On January 1, 2023, Sunland Ltd. scd 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 account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 10E
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