Required information [The following information applies to the questions displayed below.] 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. 2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the contingent liability for warranties. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 9MC: Blake Department Store sells television sets with one-year warranties that cover repair and...
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Required information
[The following information applies to the questions displayed below.]
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.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] 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.
2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
2
Record the contingent liability for warranties.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
Transcribed Image Text:2. & 3. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the contingent liability for warranties. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
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