Question
Question: 6 Estimated Warranty Liability Cook-Rite Co. sold $722,000 of equipment during January under a six-month warranty. The cost to repair defects under the warranty
Question: 6 Estimated Warranty Liability Cook-Rite Co. sold $722,000 of equipment during January under a six-month warranty. The cost to repair defects under the warranty is estimated at 6.5% of the sales price. On August 15, a customer required a $280 part replacement, plus $155 of labor under the warranty.
Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales.
Jan. 31 Accounts Payable
Cash
Product Warranty Expense
Supplies
Accounts Payable
Cash
Product Warranty Payable
Wages Payable Feedback
(b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank.
Aug. 15 Accounts Payable
Product Warranty Expense
Supplies
Wages Expense
Accounts Payable
Cash
Supplies
Cash
Product Warranty Payable
Unearned Wages
Wages Payable
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