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%.

Question

The following transactions of Dunn Miles occurred during 2018​:

Requirements
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?
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%.
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Journal and Ledger Balance

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Transcribed Image Text

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%.