Question
Warranty Quick Manufacturing Co. warrants its products for one year. The estimated product warranty is 10% of sales. The sales were 770,000 for April. In
Warranty
Quick Manufacturing Co. warrants its products for one year. The estimated product warranty is 10% of sales. The sales were 770,000 for April. In September, the actual warranty repair costs were 45,000.
1. Prepare the entry to record the accrued product warranty at April 30.
2. Journalize the entry to record the warranty cost in September.
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Financial accounting
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
8th Edition
9780135114933, 136108865, 978-0136108863
