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red box correct answers? On January 1,2019 , Wildhorse Company began a warranty program to stimulate sales. It is estimated that 5% of the units
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On January 1,2019 , Wildhorse Company began a warranty program to stimulate sales. It is estimated that 5% of the units sold will be returned for repair at an estimated cost of $38 per unit. Sales and warranty figures for the three years ended December 31 are as follows: Your answer is partially correct. Calculate the warranty expense for each year and warranty liability at the end of each year. Record the warranty transactions for each year. Credit Repair Parts Inventory for the actual warranty costs. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry " for the account titles and enter 0 for the amounts.) (To record honouring warranty contracts.) Warranty Liability Repair Parts Inventory (To accrue warranty expense.) 2021 Warranty Expense 2660 Warranty Liability (To record honouring warranty contracts.) Warranty Liability Repair Parts Inventory (To accrue warranty expense.) eTextbook and Media List of Accounts eTextbook and Media Your answer is correct. To date, what percentage of the units sold have been returned for repair under warranty? What has been the average actual warranty cost per unit for the three-year period? (Round percentage of units returned answer to 2 decimal place, e.g. 52.73% and average warranty cost per unit to 2 decimal places, e.s. 52.76.) Percentage of units returned for repair Average actual warranty cost per unit Step by Step Solution
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