Question
Question 40 (Mandatory) (2.25 points) 28,225 units of merchandise inventory are sold during the accounting period, for a retail price of $125 per unit, and
Question 40 (Mandatory) (2.25 points)
28,225 units of merchandise inventory are sold during the accounting period, for a retail price of $125 per unit, and all units are covered under warranty. The estimated cost of repairs is 7.2% of sales price.
Provide the journal entry to recognize the product warranty expense:
Question 40 options:
| Dr. Product Warranty Expense $3,528,125 Cr. Product Warranty Payable $3,528,125 |
| Dr. Product Warranty Payable $254,025 Cr. Product Warranty Expense $254,025 |
| Dr. Product Warranty Expense $254,025 Cr. Product Warranty Payable $254,025 |
| Dr. Product Warranty Payable $3,528,125 Cr. Product Warranty Expense $3,528,125 |
Question 41 (Mandatory) (2.25 points)
28,225 units of merchandise inventory are sold during the accounting period, for a retail price of $125 per unit, and all units are covered under warranty. The estimated cost of repairs is 7.2% of sales price.
Provide the journal entry to recognize the replacement of a $85 part per the warranty agreement:
Question 41 options:
| Dr. Product Warranty Payable $85 Cr. Supplies $85 |
| Dr. Product Warranty Expense $85 Cr. Product Warranty Payable $85 |
| Dr. Product Warranty Payable $85 Cr. Product Warranty Expense $85 |
| Dr. Inventory $85 Cr. Product Warranty Payable $85 |
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