Question
Revise your worksheet based on these new assumptions and then answer the questions that follow. Number of units sold 44,000 Estimated units needing warranty 6
Revise your worksheet based on these new assumptions and then answer the questions that follow.
Number of units sold | 44,000 | ||
Estimated units needing warranty | 6 | % | |
Estimated warranty cost per unit | $ | 290 | |
Portion of units fixed in current year | 0 | % | |
Alternative: | |||
Portion of units fixed in current year | 40 | % | |
Required: 1a.What are the revised amount of estimated warranty units and future warranty costs?
Units:
Future Warranty Costs:
1b.Prepare the journal entry to record the warranty expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) - Prepare the year-end adjusting entry for estimated warranty costs, assuming all associated costs will occur in the future.
- Prepare the year-end adjusting entry for estimated warranty costs, assuming 40% of the associated costs will occur in the future.
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