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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 45
Accrued product warranty
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $1,100,000 for January. On February 7, a customer received warranty repairs requiring $175 of parts and $80 of labor.
A. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty.
B. Journalize the entry to record the warranty work provided in February.
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $1,100,000 for January. On February 7, a customer received warranty repairs requiring $175 of parts and $80 of labor.
A. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty.
B. Journalize the entry to record the warranty work provided in February.
Explanation
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Product policy:
When a business promise...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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