Question
In 2019, DELL Company sells 3,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected
In 2019, DELL Company sells 3,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $50 per unit.
Estimated warranty costs on December 31, 2019, is: *
$4,500
$3,000
$1,500
$22,500
None of the above
Journal entry for estimated warranty costs will include: *
Debit Warranty Expense and Credit Repair Parts,
Debit Warranty Liability and Credit Repair Parts
Debit Warranty Expense and Credit Warranty Liability
Credit Warranty Liability and Debit Repair Parts
None of the above
The entry to record the units repaired during 2019 is: *
Debit Warranty Expense, Credit Warranty Liability
Debit Warranty Liability, Credit Repair Parts
Credit Repair Parts, Debit Warranty Expense
Credit Warranty Liability, Debit Repair Parts
None of the above
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