Exercise 8-16 (Static) Record warranties over two years (LO8-5) Lindy Appliance begins operations in 2024 and offers a one-year warranty on all products sold. Total appliance sales in 2024 are $1,600,000, and Lindy estimates future warranty costs in 2025 to be 2% of current sales. Actual warranty costs in 2025 are $25,000. Also in 2025, Lindy has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in 2025 to be 1.5%. Required: 1. to 3. Record the necessary entries in the Journal Entry Worksheet below. 4. What is the balance in Warranty Liability at the end of 2024 and 2025? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Warranty Liability What is the balance in Warranty Liability at the end of 2024 and 2025? $ Answer is complete but not entirely correct. 2024 32,000 $ 2025 43,000 < Req 1 to 3 Reg 4 >

Exercise 8-16 (Static) Record warranties over two years (LO8-5) Lindy Appliance begins operations in 2024 and offers a one-year warranty on all products sold. Total appliance sales in 2024 are $1,600,000, and Lindy estimates future warranty costs in 2025 to be 2% of current sales. Actual warranty costs in 2025 are $25,000. Also in 2025, Lindy has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in 2025 to be 1.5%. Required: 1. to 3. Record the necessary entries in the Journal Entry Worksheet below. 4. What is the balance in Warranty Liability at the end of 2024 and 2025? Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Warranty Liability What is the balance in Warranty Liability at the end of 2024 and 2025? $ Answer is complete but not entirely correct. 2024 32,000 $ 2025 43,000 < Req 1 to 3 Reg 4 >

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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