Prepare the booking entries and indicate your assumptions for each entry.
An entity manufactures a baby swing product, for which it gives a full warranty for all manufacturing defects. In 2020 reporting period, the entity sells 500,000 baby swings at 2,000€ each. To sell these products, the company must pay a commission to distributor of 200€ each, which is including in the selling price of 2,000€. […]