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tially Marigold Factory provides a 2-year warranty with one of its products which was first sold in 2025. Marigold sold $940,900 of products subject
tially Marigold Factory provides a 2-year warranty with one of its products which was first sold in 2025. Marigold sold $940,900 of products subject to the warranty. Marigold expects $122,010 of warranty costs over the next 2 years. In that year, Marigold spent $74,460 servicing warranty claims. Prepare Marigold's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation During 2025 Cash ? Cash Sales Revenue (To record payment for warranty costs incurred) Warranty Expense 2,037 Cash, Inventory, Wages Payable (To record sales) DEC 8 Debit 940900 74460 Credit 940900 74460 1 tv / A W
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