$143,000 of kotchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at of the sales price. On October 15, a customer required a $100 part replacement, plus $87 labor under the warranty. a. Provide the journal entry for the estimated expense on Septimber 30. If an amount box does not require an entry, leave it blank b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank

$143,000 of kotchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at of the sales price. On October 15, a customer required a $100 part replacement, plus $87 labor under the warranty. a. Provide the journal entry for the estimated expense on Septimber 30. If an amount box does not require an entry, leave it blank b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9MC: Blake Department Store sells television sets with one-year warranties that cover repair and...

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Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000
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