EZ Equipment Co. sold $870,000 of equipment during March under a one-year warranty. The cost to repair

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EZ Equipment Co. sold $870,000 of equipment during March under a one-year warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On October 4, a customer required a $420 part replacement, plus $100 of labor under the warranty.
Provide the journal entry for
(a) The estimated warranty expense on March 31
(b) The October 4 warranty work.

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Accounting

ISBN: 978-0324401844

22nd Edition

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

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