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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 7
Accounting for warranty expense and warranty payable
The accounting records of Clay Ceramics included the following at January 1, 2012:
In the past, Clay's warranty expense has been 8% of sales. During 2012, Clay made sales of $136,000 and paid $7,000 to satisfy warranty claims.
Requirements
1. Journalize Clay's warranty expense and warranty payments during 2012 Explanations are not required.
2. What balance of Estimated warranty payable will Clay report on its balance sheet at December 31, 2012
The accounting records of Clay Ceramics included the following at January 1, 2012:
In the past, Clay's warranty expense has been 8% of sales. During 2012, Clay made sales of $136,000 and paid $7,000 to satisfy warranty claims.
Requirements
1. Journalize Clay's warranty expense and warranty payments during 2012 Explanations are not required.
2. What balance of Estimated warranty payable will Clay report on its balance sheet at December 31, 2012
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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