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Hello, I have have posted a photo of the problem and the list of terms that are to be used to complete this journal entry.
Hello, I have have posted a photo of the problem and the list of terms that are to be used to complete this journal entry. I need help filling out the journal with the terms above. Thanks!
Clean Corporation manufactures and sells dishwashers. Clean provides all customers with a two year wamanty guaranteeing to repair free of charge, any defects reported during this time period. During the year it sold 100,000 dishwashers for $325 each. Analysis of past wamanty records indicates that 12% of all sales will be returned for repair within the wamanty period. Clean expects to incur expenditures of $14 to repair each dishwasher. The account Estimated Liability for Warranties had a balance of $120,000 on January 1. aean in $150,000 in actual expenditures during the year. curred Required: Prepare al foumal entries necessan to record the events related to the warranty transactions dunng the year. Determine the adjusted ending balance in the Estimated Liabilty for Warranties account. Chart of Accounts CHART OF A CCOUNTS Clean Corporation General Ledge ASSETS REVENUE 411 Sales 21 AC unts Receivable 141 Inventory EXPENSES 500 Cost of Goods Sold 52 Prepaid Insurance 521 Salaries and Wages Expense 54 Suppl 174 Equipment 525 Warranty Expense 532 Utilities Expense 79 Accumulated Depreciation 533 In urance ense 534 Rent Expense LIABILITIES 211 Accounts Payable 537 Supp Expense 231 Salaries and Wage 54 Depreciation E yable pense 235 Notes Payable 551 Advertsing Expense 253 Estimated Liability for Wamantes 559 Miscellaneous Expenses 26 Income Taxes Payable 810 Interest Expense come Ta x ExpenseStep by Step Solution
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