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ABC Company sold 250 machines with a one year warranty contract. It is estimated that 6% of the machines will be defective with an average
ABC Company sold 250 machines with a one year warranty contract. It is estimated that 6% of the machines will be defective with an average repair cost of $20 per machine. During the year, the company honored warranty contracts on 8 machines.
1) The number of estimated defective units is: *
2) The estimated warranty expense of the year is: *
3) The repair cost of the year is: *
4) The adjusting entry to accrue the estimated warranty costs should include: *
5) The repair cost entry will include: *
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