Question & Answer: Ivanhoe Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the n…..

Ivanhoe Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2017, the corporation sells for cash 395 computers at a unit price of $2,260. On the basis of past experience, the 2- year warranty costs are estimated to be $162 for parts and $192 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2017.) The warranty is not sold separately from the computer. Record any necessary journal entries in 2017 (If no entry is required, select No Entry-for the account titles and enter 0 for the amounts. Credit account tities are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Ivanhoe Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2017, the corporation sells for cash 395 computers at a unit price of $2,260. On the basis of past experience, the 2- year warranty costs are estimated to be $162 for parts and $192 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2017.) The warranty is not sold separately from the computer. Record any necessary journal entries in 2017′ (If no entry is required, select ‘No Entry-for the account titles and enter 0 for the amounts. Credit account tities are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit