1.

Journalize

ArtieArtie?'s

warranty expense for the period and the? company's cash payments to satisfy warranty claims. Explanations are not required.

2.

Show what

Artie'sArtie's

will report on its income statement and balance sheet for this situation at the end of the period.

3.

Which data item from requirement 2 will affect the current? ratio? Will

ArtieArtie?'s

current ratio increase or decrease as a result of this? item?

The accounting records of

ArtieArtie?'s

Appliances included the following balances at the end of the? period:

Estimated Warranty Payable

Sales Revenue

Warranty Expense

Beg bal

2,500

104,000

In the? past,

ArtieArtie?'s

warranty expense has been

5 %5%

of sales. During the current

period?,

the business paid

$ 4 comma 000$4,000

to satisfy the warranty claims.Read the requirements

.

Requirement 1. Journalize

ArtieArtie?'s

warranty expense for the period and the? company's cash payments to satisfy warranty claims. Explanations are not required.

Start by journalizing the warranty expense.