Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 28

Estimated warranty liability
Quantas Industries sold $325,000 of consumer electronics during July under a nine-month waranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the warranty.
Journalize the entry to record (A) the estimated warranty expense on July 31 for July sales, and (B) the November 11 cash payment.