Answer:
Flint Company Journal entry
Jul. 10,2020
Dr Cash 751,440
(202*3,720)
Cr Sales Revenue 751,440
During 2020
Dr Warranty expense 18,560
Cr Inventory 18,560
Dec. 31,2020
Dr Warranty expense 53,150 (202*355)-18,560
Cr Warranty Liability 53,150
Explanation:
On July 10 2020 Flint Company was said to sold 202 of his color laser copiers for $3,720 which means we have to Debit cash with an amount of 751,440(202*3,720) and Credit sales Revenue with the same amount.
December 31, 2020 the Actual warranty costs incurred were $18,560 which means we have to Debit Warranty expense with 18,560 and Credit Inventory with 18,560
The Maintenance on each copier during the warranty period was estimated to be $355 which means we have to Debit Warranty expense with 53,150 [(202*355)-18,560] and
Credit Warranty Liability with 53,150.
