Estimated warranty liability OBJ. 5 Quantas Industries sold $325,000 of consumer electronics during July under a nine-month
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Estimated warranty liability OBJ. 5 Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the warranty.
Provide the journal entry for
(a) the estimated warranty expense on July 31 for July sales, and
(b) the November 11 cash payment.
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Related Book For
Financial And Managerial Accounting
ISBN: 9781305267831,9781305267848
13th Edition
Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac
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