Earl-Keen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair defects

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Earl-Keen Co. sold $260,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 4% of the sales price. On August 15, a customer required a $100 part replacement plus $50 of labor under the warranty. Provide the journal entry for
(a) The estimated warranty expense on January 31 for January sales and
(b) The August 15 warranty work?
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Accounting

ISBN: 978-1337899451

27th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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