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Instructions X Ecco Company sold $136,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at
Instructions X Ecco Company sold $136,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 7% of the sales price. On October 15, a customer required a $140 part replacement, plus $89 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 Journal DATE DESCRIPTION 1 2 JOURNAL ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS b. Provide the journal entry for the October 15 warranty work. Refer to the Chart of Accounts for exact wording of account titles. DATE DESCRIPTION 1 2 3 JOURNAL LIABILITIES EQUITY PAGE 1 ACCOUNTING EQUATION LIABILITIES EQUITY POST. REF. DEBIT CREDIT ASSETS
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