At the beginning of 2016,McKee,Inc.had a balance in the Warranty Payable account of $15,600.During the year McKee sold for $650,000 several products that carried a two-year warranty.McKee estimated that warranty expense would be 3% of sales for the year.
a)Prepare McKee's year-end adjusting journal entry for warranty expense.
b)If McKee's incurred actual warranty cost is $12,500 during 2016,what is the balance in the Warranties Payable account after the adjusting entry is made?

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The Answer of At the beginning of 2016,McKee,Inc.had a balance in the Warranty Payable account of $15,600.During the year McKee sold for $650,000 several products that carried a two-year warranty.McKee estimated that warranty expense would be 3% of sales for the year.
a)Prepare McKee's year-end adjusting journal entry for warranty expense.
b)If McKee's incurred actual warranty cost is $12,500 during 2016,what is the balance in the Warranties Payable account after the adjusting entry is made?

At the Beginning of 2016,McKee,Inc