Lawrence Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 4% of sales revenue. In 2017, the company had $608,000 in sales. In the same year, Lawrence Sales replaced defective goods with a cost of $18,500. Which of the following is the entry needed to record the replacement of the defective goods?

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The Answer of Lawrence Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 4% of sales revenue. In 2017, the company had $608,000 in sales. In the same year, Lawrence Sales replaced defective goods with a cost of $18,500. Which of the following is the entry needed to record the replacement of the defective goods?

Lawrence Sales Corporation Offers Warranties on All Their Electronic Goods