Urban Inc. has sales of $45,000 during January and a 90 day warranty on all products sold. It is estimated 3% of January sales will require warranty repairs. What is the journal entry on January 31 to accrue for warranty costs? Debit Accrued Warranty Payable $1,350; Credit Warranty Expense $1,350 Debit Accrued Warranty Payable $45,000; Credit Warranty Expense $45,000 O Debit Warranty Expense $45,000; Credit Accrued Warranty Payable $45,000 Debit Warranty Expense $1,350; Credit Accrued Warranty Payable $1,350

Urban Inc. has sales of $45,000 during January and a 90 day warranty on all products sold. It is estimated 3% of January sales will require warranty repairs. What is the journal entry on January 31 to accrue for warranty costs? Debit Accrued Warranty Payable $1,350; Credit Warranty Expense $1,350 Debit Accrued Warranty Payable $45,000; Credit Warranty Expense $45,000 O Debit Warranty Expense $45,000; Credit Accrued Warranty Payable $45,000 Debit Warranty Expense $1,350; Credit Accrued Warranty Payable $1,350

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 10RE

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