Accrued Product Warranty

Logan Manufacturing Co. warrants its products for one year. The estimated product warranty is 5% of sales. Assume that sales were $213,000 for January. In February, a customer received warranty repairs requiring $230 of parts and $70 of labor.

a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank.

		fill in the blank 73f57ef96ff7077_2	fill in the blank 73f57ef96ff7077_3
		fill in the blank 73f57ef96ff7077_5	fill in the blank 73f57ef96ff7077_6

b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank.

		fill in the blank 684a75fc9f88fe2_2	fill in the blank 684a75fc9f88fe2_3
		fill in the blank 684a75fc9f88fe2_5	fill in the blank 684a75fc9f88fe2_6
		fill in the blank 684a75fc9f88fe2_8	fill in the blank 684a75fc9f88fe2_9

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