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Accrued Product Warranty Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 5% of sales. Assume that sales were $181,000

Accrued Product Warranty

Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 5% of sales. Assume that sales were $181,000 for January. In February, a customer received warranty repairs requiring $160 of parts and $85 of labor.

For a compound transaction, if an amount box does not require an entry, leave it blank.

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.

fill in the blank 7a0961fb8f97feb_2
fill in the blank 7a0961fb8f97feb_4

b. Journalize the entry to record the warranty work provided in February.

fill in the blank c642df02fffb070_2 fill in the blank c642df02fffb070_3
fill in the blank c642df02fffb070_5 fill in the blank c642df02fffb070_6
fill in the blank c642df02fffb070_8 fill in the blank c642df02fffb070_9

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