Early in 2020,Crow Equipment sold 500 Rollomatics at $6,000 each. During 2020, Crow spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.
Instructions:
Prepare 2020 entries for Crow. Assume that Crow estimates the total cost of servicing the warranties in the second year will be $35,000.
