Question: Kyrgyz Co sold 200 000 of equipment during February under a

Kyrgyz Co. sold $200,000 of equipment during February under a one-year warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. On July 24, a customer required a $60 part replacement, plus $32 of labor under the warranty.
Provide the journal entry for
(a) The estimated warranty expense on February 28 for February sales,
(b) The July 24 warranty work.

View Solution:

Sale on SolutionInn
  • CreatedFebruary 28, 2014
  • Files Included
Post your question