Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were $475,000 for September. In October, a customer received warranty repairs requiring $215 of parts and $65 of labor.
(a)Journalize the adjusting entry required at September 30, the end of the first month of the current year, to record the estimated product warranty expense.
(b)Journalize the entry to record the warranty work provided in October.

Question

Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were $475,000 for September. In October, a customer received warranty repairs requiring $215 of parts and $65 of labor.​
(a)Journalize the adjusting entry required at September 30, the end of the first month of the current year, to record the estimated product warranty expense.
(b)Journalize the entry to record the warranty work provided in October.​​

Quizplus · Accepted Answer

The Answer of Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were $475,000 for September. In October, a customer received warranty repairs requiring $215 of parts and $65 of labor.​
(a)Journalize the adjusting entry required at September 30, the end of the first month of the current year, to record the estimated product warranty expense.
(b)Journalize the entry to record the warranty work provided in October.​​

Nelson Industries Warrants Its Products for One Year