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During August, Soccer Company sells $266,000 in merchandise that has a one-year warranty. Warranty expense is estimated at 6% of sales. The warranty liability account
During August, Soccer Company sells $266,000 in merchandise that has a one-year warranty. Warranty expense is estimated at 6% of sales. The warranty liability account has a credit balance of $13,800 before adjustment. The entry to record the estimated warranty expense for the month is: Debit Warranty Expense $828; credit Estimated Warranty Liability $828. Debit Warranty Expense $13,800; credit Estimated Warranty Liability $13,800. Debit Estimated Warranty Liability $15,960; credit Warranty Expense $15,960. Debit Estimated Warranty Liability $15,960; credit Warranty Expense $15,960. Debit Warranty Expense $15,960; credit Estimated Warranty Liability $15,960. ) OO
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