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Instructions Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September The cost to repair defects under the warranty is estimated at 9%
Instructions Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September The cost to repair defects under the warranty is estimated at 9% of the sales price. On October 15, customer required a $100 part replacement, plus $86 labor under the warranty. Required: Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work. Refer to the Chart of Accounts for exact wording of account titles. General Ledger ASSETS REVENUE 410 Sales 110 Cash 111 Accounts Receivable 610 Interest Revenue 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation Office Equipment EXPENSES 510 Cost of Goods Sold 520 Salaries Expense 525 Delivery Expense 526 Repairs Expense 531 Rent Expense 533 Insurance Expense 534 Supplies Expense 535 Cash Short and Over 536 Product Warranty Expense 541 Vacation Pay Expense 542 Pension Expense 543 Payroll Tax Expense 544 Federal Income Tax Expense 545 State Income Tax Expense 561 Depreciation Expense-Building 562 Depreciation Expense-Office Equipmen 570 Damage Awards and Fines 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 221 Wages Payable 222 Social Security Tax Payable 223 Medicare Tax Payable 224 Federal Withholding Tax Payable 225 State Withholding Tax Payable 226 Federal Unemployment Tax Payable 227 State Unemployment Tax Payable 228 State Disability Insurance 231 Medical Insurance Payable 232 Retirement Savings Deductions Payable Remaining: 1:43:43 All work saved EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Remaining: 1:43:25 Romaining: 1:43:25 All work saved. All work saved
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