In the past, Earth and Clay's warranty expense has been 8% of sales. During 2018, Earth and Clay made sales of $ 128,000 and paid $ 8,000 to satisfy warranty claims.

Requirements

1. Journalize Earth and Clay's warranty expense and warranty payments during 2018?

2. What balance of Estimated Warranty Payable will Earth and Clay's on its balance sheet at December 31, 2018?

Answer rating: 100% (QA)

Question 1 Date Accounts and Explanation Debit Credit Warran... View the full answer