On December 31, 2025, Pharoah Company sells production equipment to Steering Inc. for $69,000. Pharoah includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2025. At December 31, 2025, Pharoah estimates that $1,860 of warranty costs will be incurred in the second year of the warranty. (a) Your answer is partially correct. Prepare the journal entry to record this transaction on December 31, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Warranty Expense Warranty Liability No Entry No Entry Debit Credit

On December 31, 2025, Pharoah Company sells production equipment to Steering Inc. for $69,000. Pharoah includes a 1-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2025. At December 31, 2025, Pharoah estimates that $1,860 of warranty costs will be incurred in the second year of the warranty. (a) Your answer is partially correct. Prepare the journal entry to record this transaction on December 31, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Warranty Expense Warranty Liability No Entry No Entry Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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