Question
On September 1, Home Store sells a mower (that costs $290) for $590 cash with a one-year warranty that covers parts. Warranty expense is estimated
On September 1, Home Store sells a mower (that costs $290) for $590 cash with a one-year warranty that covers parts. Warranty expense is estimated at 10% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $41 in materials taken from the Repair Parts Inventory. Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs. (Round your answers to 2 decimal places.)
4 journal entries
1: Record the mower sales(sep1)
2: Record the cost of mower sales(sep1)
3: Record the estimated warranty expense(sep1)
4: Record the cos of warranty repairs (Jan24)
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