Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September.  The cost to repair defects under the warranty is estimated at 6% of the sales price.  On October 15, a customer required a $200 part replacement, plus $85 labor under the warranty. ​ Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work.

Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter5: Activity-based Costing And Management
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Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September.  The cost to repair defects under the warranty is estimated at 6% of the sales price.  On October 15, a customer required a $200 part replacement, plus $85 labor under the warranty.

Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work.

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