Truck Corp. sells a truck for $25,000. The truck comes with a basic 3-year warranty and an additional

2-year extended warranty, for which the customer pays an extra $300. During 19X1, Truck pays out

$150 in repairs required under the basic warranty.

(a) Prepare the entry for the sale of the truck and the extended warranty.

(b) Prepare the entry for the $150 repair.

(c) Prepare the annual entry to recognize revenue from the sale of the extended warranty

 

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