Crystal Audio Company warrants its products for one year. The estimated product warranty is 2% of sales.
Question:
Crystal Audio Company warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $750,000 for January. In February, a customer received warranty repairs requiring $390 of parts and $570 of labor.
a. Journalize the adjusting entry required at January 31, the end of the first month of the current year, to record the accrued product warranty.
b. Journalize the entry to record the warranty work provided in February.
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Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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