Ecco Company sold $158,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 5% of the sales price. On October 15, a customer required a $140 part replacement, plus $86 labor under the warranty. a. Provide the journal entry for the estimated expense on September 30. b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank. Cash Product Warranty Expense Product Warranty Payable Repairs Expense Wages Payable
Ecco Company sold $158,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 5% of the sales price. On October 15, a customer required a $140 part replacement, plus $86 labor under the warranty. a. Provide the journal entry for the estimated expense on September 30. b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank. Cash Product Warranty Expense Product Warranty Payable Repairs Expense Wages Payable
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...
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