Apr. 30 Miles is party to a patent infringement lawsuit of $160,000. Miles's attorney is certain it is remote that Miles will lose this lawsuit. Estimated warranty expense at 4% of sales of $440,000. Warranty claims paid in the amount of $6,400. Miles is party to a lawsuit for copyright violation of $70,000. Miles's attorney advises that it is probable Miles will lose this lawsuit. The attorney estimates the loss at $70,000. Miles estimated warranty expense on sales for the second half of the year of $520,000 Jun. 30 Jul. 28 Sep. 30 Dec. 31 at 4%.

Apr. 30 Miles is party to a patent infringement lawsuit of $160,000. Miles's attorney is certain it is remote that Miles will lose this lawsuit. Estimated warranty expense at 4% of sales of $440,000. Warranty claims paid in the amount of $6,400. Miles is party to a lawsuit for copyright violation of $70,000. Miles's attorney advises that it is probable Miles will lose this lawsuit. The attorney estimates the loss at $70,000. Miles estimated warranty expense on sales for the second half of the year of $520,000 Jun. 30 Jul. 28 Sep. 30 Dec. 31 at 4%.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7MC

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1.	Journalize required transactions, if any, in Miles's general journal. Explanations are not required.
2.	What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?