need help with B. Crane Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on pastexperience, Crane estimates that 3% of the units sold will become defective during the warranty period. Managementestimates that the average cost of replacing or repairing a defective unit is $15. The units sold and units defective thatoccurred during the last 2 months of 2022 are as follows.Month Units Sold Units Defective Prior to December 31November30,000600December32,000400(a)Your Answer Correct Answer (Used)Your answer is partially correct.Prepare the journal entry to record the costs incurred in honoring 1,000 warranty claims. (Assume actual costs of$15,000.) (Credit account titles are automatically indented when amount is entered. Do not indentmanually.)monAccount Titles and ExplanationDebitCreditWarranty Expense44400Warranty Liability4400eTextbook and MediaList of AccountsAttempts: 2 of 2 used(b)Prepare the journal entry to record the warranty liability at December 31 for the units sold in November andDecember. (Credit account titles are automatically indented when amount is entered. Do notindent manually.)Account Titles and ExplanationDebitCredit

The warranty Expenses are estimated on the basis of past experience for defective units.

Crane Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Crane estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $15. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month Units Sold Units Defective Prior to December 31 November 30,000 600 December 32,000 400

Crane Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Crane estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $15. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month Units Sold Units Defective Prior to December 31 November 30,000 600 December 32,000 400

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 56BE

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