E13-11b (warranties) gonzalez equipment company sold 600 rollomatics
E13-11B (Warranties) Gonzalez Equipment Company sold 600 Rollomatics during 2014 at $4,000 each. During 2014, Gonzalez spent $30,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Instructions (a) Prepare 2014 entries for Gonzalez using the expense warranty approach. Assume that Gonzalez estimates the total cost of servicing the warranties will be $150,000 for 2 years. (b) Prepare […]
