1. Johnson company sells a blender for $40 that costs them $16. The company provides a 5 year warranty which they will replace any blenders that quit functioning for the customers. For sales in 2021, they anticipate 1,800 blenders will be returned in for replacement. Make the journal entry for 2021 warranty expense. 2. During 2021, 1,300 blenders quit working and had to be replaced by Johnson.
1. Johnson company sells a blender for $40 that costs them $16. The company provides a 5 year warranty which they will replace any blenders that quit functioning for the customers. For sales in 2021, they anticipate 1,800 blenders will be returned in for replacement. Make the journal entry for 2021 warranty expense. 2. During 2021, 1,300 blenders quit working and had to be replaced by Johnson.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.5P
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1. Johnson company sells a blender for $40 that costs them $16. The company provides a 5 year warranty which they will replace any blenders that quit functioning for the customers. For sales in 2021, they anticipate 1,800 blenders will be returned in for replacement. Make the journal entry for 2021 warranty expense.
2. During 2021, 1,300 blenders quit working and had to be replaced by Johnson.
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