Woodmier Lawn Products introduced a new line of commercial sprinklers in 2010 that carry a one-year warranty
Question:
In late 2011, the companys claims experience was evaluated and it was determined that claims were far more than expected3% of sales rather than 2%.
Required:
1. Assuming sales of the sprinklers in 2011 were $3.6 million and warranty expenditures in 2011 totaled $88,000, prepare any journal entries related to the warranty.
2. Assuming sales of the sprinklers were discontinued after 2010, prepare any journal entry(s) in 2011 related to thewarranty.
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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