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Please help with this accounting question Exercise 11-05 a-c Vaughn Company sells a ton atic can openers unde a 75-day a ty for defective ne
Please help with this accounting question
Exercise 11-05 a-c Vaughn Company sells a ton atic can openers unde a 75-day a ty for defective ne chandise. Based on past experience Vaughn estimates that 3% ofthe units sold or rapairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2020 are as follows metoe of ill become defective during the arra y period. Mana e ent estimates that the average cost of epid t ocaned curing the Month November 38,400 December 40400 Units Sold Units Defective Pri or to December 31 768 505 Prepare the journal entry to record the costs incurred in honoring 1,273 werranty claims. (Assume actual costs of $25,460.) (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit (To record honoring of warranty contracts.) SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the ournal entry to record the erranty liability at December 31 for the units sold in November and December Credit account titles are 8utomatically dented when amount is entered. Do not indent m nuany.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Give the entry to record the honoring of 500 warranty contracts in January at an average cost of $20. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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