Zinn Co. sold $500,000 of equipment during May under a one-year warranty. The cost to repair defects

Question:

Zinn Co. sold $500,000 of equipment during May under a one-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On October 10, a customer required a $100 part replacement, plus $65 of labor under the warranty.

Provide the journal entry for

(a) The estimated warranty expense on May 31 and

(b) The October 10 warranty work.