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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 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.
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.
Explanation
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Contingent Liability may or may not aris...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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