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Coronado Corporation sells DVD players. The corporation also offers its customers a 4-year warranty contract. During 2020, Coronado sold 20,000 warranty contracts at $132 each. The corporation spent $173,000 servicing warranties during 2020, and it estimates that an additional $865,000 will be spent in the future to service the warranties.
Question 1: Prepare Coronado's journal entry for the recognition of warranty revenue. Assume the service costs are inventory costs. (Round intermediate calculations to 5 decimal places, e.g. 1.55467 and final answers to 0 decimal places, e.g. 5,125. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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