Estimated Warranty Liability Yummy sold $526,000 of consumer electronics during July under a six-month warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On November 10, a customer was given $169 cash under terms of the warranty.
Estimated Warranty Liability Yummy sold $526,000 of consumer electronics during July under a six-month warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On November 10, a customer was given $169 cash under terms of the warranty.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 34E
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Estimated Warranty Liability
Yummy sold $526,000 of consumer electronics during July under a six-month warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On November 10, a customer was given $169 cash under terms of the warranty.
(a) Provide the
July 31 | fill in the blank | fill in the blank | |
(b) Provide the journal entry for the November 10 cash payment. If an amount box does not require an entry, leave it blank.
Nov. 10 | fill in the blank | fill in the blank | |
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