Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Wright Machinery Corporation manufactures automible engines for major automobile producers

Wright Machinery Corporation manufactures automible engines for major automobile producers

Wright Machinery Corporation manufactures automible engines for major automobile producers. these engiines have a warranty against any defects for a period of five years. Even though wright Machiney does not have a seperate warranty contract, it assumes that the $993 selling price of each egine includes an implied service contract of $73 per engine. During 2007 Wright Machinery sold 8000 engines to National Motors. During 2007 Wright Machinery repaired defective motors at a cost of $94,400.

Required
Prepare the journal entries for the preceeding transactions, assuming that wright Machinery uses the sales warranty accrual method to account for warranties.

May 01 2018 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions