Wildcat Computers sells all of its computers for $2,500 each. During the month of February Wildcat sold 20 computers. It is estimated that the warranty expense is 2% of gross sales. Wildcat spent $100 in cash and $150 in parts repairing computers for this month.
Required: Prepare the journal entries to record the sale, record the estimated warranty expense, and record the warranty repairs.

Question

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The Answer of Wildcat Computers sells all of its computers for $2,500 each. During the month of February Wildcat sold 20 computers. It is estimated that the warranty expense is 2% of gross sales. Wildcat spent $100 in cash and $150 in parts repairing computers for this month.
Required: Prepare the journal entries to record the sale, record the estimated warranty expense, and record the warranty repairs.

Wildcat Computers Sells All of Its Computers for $2,500 Each