On December 31, 2025, Sheridan Company sells production equipment to Golden Inc. for $82,500, Sheridan 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, Sheridan estimates that $1,700 of warranty costs will be incurred in the second year of the warranty. (a) 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 0 for the amounts.)

On December 31, 2025, Sheridan Company sells production equipment to Golden Inc. for $82,500, Sheridan 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, Sheridan estimates that $1,700 of warranty costs will be incurred in the second year of the warranty. (a) 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 0 for the amounts.)

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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