Question

Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the warranty. Provide the journal entry for
(a) The estimated warranty expense on July 31 for July sales,
(b) The November 11 cash payment.



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  • CreatedFebruary 28, 2014
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