Feller, Inc. sells a certain machine for $35,000. Included in this price is an implied service-type warranty of $950. Fifty machines were sold in 2016. Warranty claims incurred during 2016 amounted to $21,000.
Required:
Prepare all 2016 journal entries required by the information above.

Question

Quizplus · Accepted Answer

The Answer of Feller, Inc. sells a certain machine for $35,000. Included in this price is an implied service-type warranty of $950. Fifty machines were sold in 2016. Warranty claims incurred during 2016 amounted to $21,000.
Required:
Prepare all 2016 journal entries required by the information above.