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5. During April, Koduck Cameras sold 250 instant cameras for $200 each. Each camera had cost Koduck $100 to manufacture, and carried a one-year warranty.
5. During April, Koduck Cameras sold 250 instant cameras for $200 each. Each camera had cost Koduck $100 to manufacture, and carried a one-year warranty. If 6% typically need to be replaced over the warranty period, and twelve are actually replaced during April, for what amount in April should Koduck debit Product Warranty Expense? a. $2,400 c. $4,800 b. $1,200 d. $1,500 6. Refer to number 5 above. The joumal entry to be recorded when twelve of the units were actually replaced during the month would include: a. a credit to Cash for $1,200 b. a debit to Warranty Expense for $1,500 c. a debit to Estimated Product Warnanty Liability for $1,200 d. a credit to Inventory for $1,500
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