Question
Please show all calculations for each answer. Must show all calculations!! Please show all calculations for all journal entries!! Do not repost already posted answer,
Please show all calculations for each answer. Must show all calculations!!
Please show all calculations for all journal entries!! Do not repost already posted answer, it did not provide all calculations which is why I have posted again.
C. Clean-All, Inc. sells washing machines with a 3-year assurance type warranty. In the past, Clean-All has found that in the year after the sale, warranty costs have been 3% of sales; in the second year after sale, 5% of sales; and in the third year after sale, 7% of sales. the following data are also available: Year Sales Warranty Expenditures 2018 650,000 82,000 2019 700,000 85,000
Instructions: 1. Prepare the journal entries for the preceding transactions for 2018-2019. Closing entries are not required.
2. Determine the amount Clean-All will report as liability on December 31, 2019, assuming the liability had a balance of $101,200 on December 31, 2017.
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