The following transactions of Wong Manufacturing occurred during 2025: Requirements 1. Journalize required transactions, if any, in
Question:
The following transactions of Wong Manufacturing occurred during 2025:
Requirements
1. Journalize required transactions, if any, in Wong Manufacturing’s general journal. Explanations are not required.
2. What is the ending balance in Estimated Warranty Payable assuming a beginning balance of $0?
Transcribed Image Text:
Apr. 30 Jun. 30 Jul. 28 Sep. 30 Dec. 31 Wong Manufacturing is party to a patent infringement lawsuit of $230,000. Wong Manufacturing's attorney is certain it is remote that Wong Manufacturing will lose this lawsuit. Estimated warranty expense at 3% of sales of $430,000. Warranty claims paid in the amount of $6,400. Wong Manufacturing is party to a lawsuit for copyright violation of $130,000. Wong Manufacturing's attorney advises that it is probable Wong Manufacturing will lose this lawsuit. The attorney estimates the loss at $130,000. Wong Manufacturing estimated warranty expense on sales for the second half of the year of $510,000 at 3%.
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Date Account Debit Credit Apr 30 Lawsuit Loss Expense 230000 Lawsuit Liability ...View the full answer
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