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Homework answers / question archive / Early in 2022, Sheryl Martin Equipment sold 540 Rollomatics at €6,480 each
Early in 2022, Sheryl Martin Equipment sold 540 Rollomatics at €6,480 each. During 2022, Martin spent €21,600 from Cash,Supplies, Wages Payable servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.
Prepare 2022 entries for Martin. Assume that Martin estimates the total cost of servicing the warranties will be €59,400 for the 2 years. (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. Record journal entries in the order presented in the problem.)
Date Account Titles and Explanation Debit Credit
choose a transaction date
At Sale
During 2022
Dec. 31, 2022
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
At Sale
During 2022
Dec. 31, 2022
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
At Sale
During 2022
Dec. 31, 2022
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
| Journal Entries: | |||
| Date | Accounts titles and Explanation | Debit | Credit |
| At sale | Cash (6480*540) | 3499200 | |
| Sales Revenue | 3499200 | ||
| During 2022 | Warranty Expense | 21600 | |
| Cash, Supplies, wages payable | 21600 | ||
| Dec 31 2022 | Warranty Expense | 59400 | |
| Warranty Liability | 59400 | ||
| The estimates of the Sheryl Martin will be considered as additional expense to be recorded in the year for warranty expense. | |||
