The accounting records of Sculpted Ceramics included the following at January 1, 2024:

In the past, Sculpted’s warranty expense has been 9% of sales. During 2024, Sculpted made sales of $113,000 and paid $7,000 to satisfy warranty claims.

Requirements 

1. Journalize Sculpted’s warranty expense and warranty payments during 2024.
Explanations are not required.
2. What balance of Estimated Warranty Payable will Sculpted report on its balance sheet at December 31, 2024?

Transcribed Image Text:

Estimated Warranty Payable 5,000 Beg. Bal.