On 30 June 2012,Video Manufacturers Ltd,which uses accrual accounting,estimates that it will incur warranty costs of $24 000 in the next financial year on products sold during the year just ended.On 7 October 2012,the manufacturer pays $3500 under the warranty.What is the journal entry made by Video Manufacturers Ltd on 30 June 2012?
A. DR Warranty liability $\quad $ CR Cash

B. DR Warranty liability $\quad $ CR Warranty expense

C. DR Warranty expense $\quad $ CR Warranty liability

D. DR Warranty expense $\quad $ CR Cash

Question

On 30 June 2012,Video Manufacturers Ltd,which uses accrual accounting,estimates that it will incur warranty costs of $24 000 in the next financial year on products sold during the year just ended.On 7 October 2012,the manufacturer pays $3500 under the warranty.What is the journal entry made by Video Manufacturers Ltd on 30 June 2012?
A. DR Warranty liability   $\quad $ CR Cash

B. DR Warranty liability  $\quad $ CR Warranty expense

C. DR Warranty expense  $\quad $ CR Warranty liability

D. DR Warranty expense  $\quad $ CR Cash

Quizplus · Accepted Answer

The Answer of On 30 June 2012,Video Manufacturers Ltd,which uses accrual accounting,estimates that it will incur warranty costs of $24 000 in the next financial year on products sold during the year just ended.On 7 October 2012,the manufacturer pays $3500 under the warranty.What is the journal entry made by Video Manufacturers Ltd on 30 June 2012?
A. DR Warranty liability   $\quad $ CR Cash

B. DR Warranty liability  $\quad $ CR Warranty expense

C. DR Warranty expense  $\quad $ CR Warranty liability

D. DR Warranty expense  $\quad $ CR Cash

On 30 June 2012,Video Manufacturers Ltd,which Uses Accrual Accounting,estimates That \quad

On 30 June 2012,Video Manufacturers Ltd,which Uses Accrual Accounting,estimates That $\quad$