Nash Industries changed its method of accounting for warranties from the cash basis to the accrual basis on January 1, 2018. The company's accountant determined that a liability of $70,000 should be established. Ignore income taxes.
Required:
Prepare the journal entry to record the accounting change.

Question

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The Answer of Nash Industries changed its method of accounting for warranties from the cash basis to the accrual basis on January 1, 2018. The company's accountant determined that a liability of $70,000 should be established. Ignore income taxes.
Required:
Prepare the journal entry to record the accounting change.

Nash Industries Changed Its Method of Accounting for Warranties from the Cash