The following information is related to Sunglow Solar Ltd: • Sales for the year ended 30 June 2019 was $1,200,000 • Provision for warranties before adjustment was $36,000 At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date. On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd. Required: a) Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level. b) Record the payment of the warranty claim on 16 September 2019 in general journal format.
The following information is related to Sunglow Solar Ltd: • Sales for the year ended 30 June 2019 was $1,200,000 • Provision for warranties before adjustment was $36,000 At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date. On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd. Required: a) Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level. b) Record the payment of the warranty claim on 16 September 2019 in general journal format.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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The following information is related to Sunglow Solar Ltd: • Sales for the year ended 30 June 2019 was $1,200,000 • Provision for warranties before adjustment was $36,000 At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date. On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd. Required: a) Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level. b) Record the payment of the warranty claim on 16 September 2019 in general journal format.
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