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