Question

ercise 13-11 (Part Level Submission) Early in 2017, Headland Equipment Company sold 500 Rollomatics during 2017 at $5,500 each. During 2017, Headland spent $22,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Collapse question part

(a) Prepare 2017 entries for Headland. Assume that Headland estimates the total cost of servicing the warranties will be $60,000 for 2 years.

(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.)

Date Account Titles and Explanation Debit Credit