Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 6% of the sales price. On October 15, a customer required a $200 part replacement, plus $85 labor under the warranty.?

Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work.

Question

Provide the journal entry for  (a) the estimated expense on September 30 and  (b) the October 15 warranty work.

Quizplus · Accepted Answer

The Answer of Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 6% of the sales price. On October 15, a customer required a $200 part replacement, plus $85 labor under the warranty.?

Provide the journal entry for  (a) the estimated expense on September 30 and  (b) the October 15 warranty work.

Ecco Company Sold $150,000 of Kitchen Appliances with Six-Month Warranties