Business, 26.07.2019 00:30 camrenp9889

Entertainment tonight, inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. entertainment tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. the total transaction price for the sale of the stereo system and the extended warranty is $3,000. the standalone price of each is $2,300 and $900, respectively. the estimated cost of the assurance-warranty is $350. the accounting for warranty wil include a
select one:
1. debit to warranty expense, $900.
2. debit to warranty liability, $350
3. credit to warranty liability, $900
4. credit to unearned warranty revenue, $900

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