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Sierra guarantees its snowmobles for three years. Company experience ndicates that warranty costs wil be approximately 7% of sales. Assume that the Sierra dealer in
Sierra guarantees its snowmobles for three years. Company experience ndicates that warranty costs wil be approximately 7% of sales. Assume that the Sierra dealer in Colorado Springs made sales totaling 400,000 during 2018. The concary received cash for 1 0% of the sales and notes receivable for the remainder Wamaty payments totaled $25,000 durin 2018 Read the requrements Requirement 1. Record the sales, warranty expense, and waranty payments for the company. Ignore cost of goods sold. (Record debits first, then credits Select the explanation on the last ine of the journal entry table.) Begin with the entry to record the sales (Prepare a single compound entry for this transaction) Date Accounts and Explanation Debit Credit 2018 Requirements Record the sales, warranty expense, and warranty payments for the company gnare cost of goods sold 1. 2. Assume the Estimated Warranty Payable is $0 on January 1, 2018. Post the 2018 transactions to the Estimated Warranty Payable Faccount. At the end of 2018, how much in Eatimated Warranty Payable does the company owe? Print Done
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