On November, 2019, West Point Lighthouse Corporation began to sell lanterns for $80 each. West Point uses the perpetual system to account for inventories. The lanterns are covered under a warranty that requires the company to replace any non-working lantern within 90 days. The company expects warranty costs to equal 18% of the units sold. Each lantern costs $14.

Required prepare journal entries to record the transactions and adjustments either by using the response area below or creating your own file and uploading it at the bottom of this page.

November 15, sold 200 lanterns for $16,000 cash.

November 30 recognized warranty expense for the month.

December 8, replaced 15 lanterns that were returned under warranty.

December 15, sold 550 lanterns.

December 29, replaced 40 lanterns that were returned under warranty.

December 31, recognized warranty expense for December.

General Journal Page Date Account Titles and Explanation PR Debit Credit