Hadley Industries warrants its products for one year. The estimated product warranty expense is 4% of sales. Assume that sales were $210,000 for June. In July, a customer received warranty repairs requiring $205 of parts and $75 of labor. Required: a. Journalize the adjusting entry required at June 30, the end of the first month of the current year, to record the estimated product warranty expense. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the warranty work provided in July. If an amount box does not require an entry, leave it blank.
Hadley Industries warrants its products for one year. The estimated product warranty expense is 4% of sales. Assume that sales were $210,000 for June. In July, a customer received warranty repairs requiring $205 of parts and $75 of labor. Required: a. Journalize the adjusting entry required at June 30, the end of the first month of the current year, to record the estimated product warranty expense. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the warranty work provided in July. If an amount box does not require an entry, leave it blank.
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 10.22EX
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