On 30 June 2009, M Ltd estimates that it will incur warranty costs of $150 000 in the next financial year on products sold during the year just ended. On 27 September 2009, the manufacturer pays $20 000 under the warranty. What is the journal entry made by M Ltd on 30 June 2009 Select one: Dr Warranty Llability Cr Cash O b. Dr Warranty Liability Cr Warranty Expense O c. None of the provided answers

On 30 June 2009, M Ltd estimates that it will incur warranty costs of $150 000 in the next financial year on products sold during the year just ended. On 27 September 2009, the manufacturer pays $20 000 under the warranty. What is the journal entry made by M Ltd on 30 June 2009 Select one: Dr Warranty Llability Cr Cash O b. Dr Warranty Liability Cr Warranty Expense O c. None of the provided answers

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 57BE

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