the defective units was $110,000. Instructions: a. Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2021. b. Prepare one summary journal entry at December 31, 2021 to record the cost of replacing the defective cell phones returned during November and December. c. What amounts will be included in Carrot's 2021 income statement and balance sheet at December 31, 2021, with regard to the warranty? Round amounts to the nearest dollar, Show ALL calculations for full marks.
the defective units was $110,000. Instructions: a. Prepare a journal entry to accrue for the estimated warranty costs for the November and December sales at December 31, 2021. b. Prepare one summary journal entry at December 31, 2021 to record the cost of replacing the defective cell phones returned during November and December. c. What amounts will be included in Carrot's 2021 income statement and balance sheet at December 31, 2021, with regard to the warranty? Round amounts to the nearest dollar, Show ALL calculations for full marks.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.4AP
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