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Problem 10-4A Estimated product warranty liabilities LO4 CHECK FIGURES: 2. $1,750, 3. $40,600; 4. $40,145 On November 10, 2023, Singh Electronics began to buy
Problem 10-4A Estimated product warranty liabilities LO4 CHECK FIGURES: 2. $1,750, 3. $40,600; 4. $40,145 On November 10, 2023, Singh Electronics began to buy and resell scanners for $55 cach. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned. the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new scanner is only $35. Singh estimates warranty costs based on 18% of the number of units sold. The following transactions occurred in 2023 and 2024 (ignore GST and PST) 2021 Nov 15 Sold 2,000 scams for $110,000 cash 10 Recognized waranty expense for November with an adjusting entry. Dec 8 Replaced 150 sennners that were returned under the warranty. 2024 Jan 15 Sold 5,500 sesoners. 29 Replaced 40 scanners that were returned under the war cry 31 Recognized warranty expense for December with an adjusting entry 14 Sold 275 scanners 20 Replaced 63 scanners that were returned umler the warranty. 31 Recognized waranty expense for Jamory with an adjusting entry. Required Required 1. How much warranty expense should be reported for November and December 2023? 2. How much warranty expense should be reported for January 2024 3. What is the balance of the estimated warranty liability as of December 31, 2023? 4. What is the balance of the estimated warranty liability as of January 31, 2024 5. Prepare journal entries to record the transactions and adjustments (or sales taxes)
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