November 1 Sold 5,000 units of a new product on account at $92 per unit, plus 8.2% sales tax. This new product is subject to a 1-year warranty. Record the journal entry to record the sales including the sales tax.

Enter Debits first and put DR first before the debit account and debit amount. Example: "DR INTEREST EXPENSE $5,000"

Enter Credits after all debits have been entered. Put CR then credit account and credit amount. Example: "CR CASH $5,000"

Question 17 options:

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Question 18

December 31 Assuming that an additional 5,000 units were sold in December for the year and 3% of the units are estimated to be defective with an estimated cost of $60 per unit. Assume that 20 warranty claims were made in the current year.

Prepare the adjusting journal entry for the estimated warranty liability.

Show the debit account AND amount in the first blank and the credit account AND amount in the second blank

Question 18 options:

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Question

Prepare the adjusting journal entry necessary for the outstanding Note. Assuming NO adjusting entries were made for October or November.

Show the debit account AND amount in the first blank and the credit account AND amount in the second blank

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