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Help me finish these questions please: Bramble Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Bramble estimates
Help me finish these questions please:
Bramble Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Bramble estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. (a) Your answer is partially correct. Prepare the journal entry to record the costs incurred in honoring 1,065 warranty claims. (Assume actual costs of $21,300.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Give the entry to record the honoring of 500 warranty contracts in January at an average cost of $20. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) On January 1, 2022, the ledger of Sheffield Company contains these liability accounts. During January, these selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $12,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2021 (\$7,300). 20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax. This new product is subject to a 1 -year warranty. 21 Borrowed $24,750 from Girard Bank on a 3-month, 8%, $24,750 note. 25 Sold merchandise for cash totaling $10,368, which includes 8% sales taxes. Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Notes Payable Cash Sales Taxes Payable Sales Revenue 10368 829.44Step by Step Solution
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