Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair

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.