4.

E8-15A (similar to) The accounting records of Water's Appliances included the following balances at the end of the period: Accrued Warranty Payable Sales Revenue Warranty Expense Bogbal 4,500 120,000 in the past, Water's warranty expense has been 6% of sales. During te current period, the business paid $4,000 to satisty the warranty claims. Read the coucements Requirement 1. Journalize Water's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required. Start by Joumalizing the warranty expense. (Rocord debits first, then credits. Exclude explanations from joumal entries.) Journal Entry Dato Accounts Debit Credit the Requirements edits ebit 1. Journalize Water's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required. 2. Show what Water'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 Water's current ratio increase or decrease due to this item? Print Done