Pearl Factory provides a 2-year warranty with one of its products which was first sold in 2025. Pearl sold $1,010,100 of productssubject to the warranty. Pearl expects $113,910 of warranty costs over the next 2 years. In that year, Pearl spent $63,100 servicingwarranty claims. Prepare Pearl's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry,assuming the expenditures are inventory costs. (If no entry is required, select "No Entry for the account titles and enter O for the amounts.Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Pearl Factory provides a 2-year warranty with one of its products which was first sold in 2025. Pearl sold $1,010,100 of productssubject to the warranty. Pearl expects $113,910 of warranty costs over the next 2 years. In that year, Pearl spent $63,100 servicingwarranty claims. Prepare Pearl's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry,assuming the expenditures are inventory costs. (If no entry is required, select "No Entry for the account titles and enter O for the amounts.Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Pearl Factory provides a 2-year warranty with one of its products which was first sold in 2025. Pearl sold $1,01 subject to the warranty. Pearl expects $113,910 of warranty costs over the next 2 years. In that year, Pearl sper warranty claims. Prepare Pearl's journal entry to record the sales (ignore cost of goods sold) and the December assuming the expenditures are inventory costs. (If no entry is required, select "No Entry for the account titles and er Credit account titles are automatically indented wh

Pearl Factory provides a 2-year warranty with one of its products which was first sold in 2025. Pearl sold $1,01 subject to the warranty. Pearl expects $113,910 of warranty costs over the next 2 years. In that year, Pearl sper warranty claims. Prepare Pearl's journal entry to record the sales (ignore cost of goods sold) and the December assuming the expenditures are inventory costs. (If no entry is required, select "No Entry for the account titles and er Credit account titles are automatically indented wh

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.5P

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