Bach.Co.presents the following information for 2015 and 2016.
2015 information:
Sales on account in the amount of $645,000
Warranty expense and associated liability in the amount of $125,000
No other expenses incurred.
2016 information:
Sales on account in the amount of $225,000
Warranty repairs made in the amount of $65,000
No expenses incurred.
Prepare the journal entries for 2015 and 2016 to record the sales,warranty,and income tax transactions,assume a 40% tax rate.

Question

Quizplus · Accepted Answer

The Answer of Bach.Co.presents the following information for 2015 and 2016.
2015 information:
Sales on account in the amount of $645,000
Warranty expense and associated liability in the amount of $125,000
No other expenses incurred.
2016 information:
Sales on account in the amount of $225,000
Warranty repairs made in the amount of $65,000
No expenses incurred.
Prepare the journal entries for 2015 and 2016 to record the sales,warranty,and income tax transactions,assume a 40% tax rate.

Bach.Co.presents the Following Information for 2015 and 2016