Answer:
Explanation:
The journal entries are shown below:
1. Accounts Receivable A/c Dr $1,159,000 (950 computers × $1,220)
To Sales Revenue A/c 1,159,000
(Being the sales is recorded)
2. Warranty expense A/c Dr $95,000
To Warranty liability A/c $95,000
(Being the warranty expense is recorded)
The warranty expense would be
= 950 computers × $40 + $60
= 950 computers × $100
= $95,000
3. Warranty liability A/c Dr $26,000
To Inventory A/c Dr $10,400
To Accrued payroll A/c $15,600
(Being warranty liability is recorded)