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Kingbird Factory provides a 2-year warranty with one of its products which was first sold in 2017. Kingbird sold $1,024,400 of products subject to the
Kingbird Factory provides a 2-year warranty with one of its products which was first sold in 2017. Kingbird sold $1,024,400 of products subject to the warranty. Kingbird expects $128,520 of warranty costs over the next 2 years. In that year, Kingbird spent $74,030 servicing warranty claims. Prepare Kingbirds journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs.
Date Account Titles and Explanation Debit Credit 2017 To record sales) During 2017 (To record warranty claims) 12/31/17
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