A company sells electronics and with a warranty attached and estimates that they will experience an estimated
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Question:
A company sells electronics and with a warranty attached and estimates that they will experience an estimated 5% of sales for warranties. This period's sales are going to be $200,000. The company should make the following entry to record the estimated warranty expense.
- Debit estimated warranty liability $10,000; credit warranty expense $10,000
- Debit warranty expense $10,000; credit estimated warranty liability $10,000
- Debit estimated warranty liability $10,000; credit cash $10,000
- Debit warranty expense $10,000; credit sales $10,000
Related Book For
Essentials of Business Statistics Communicating With Numbers
ISBN: 978-0078020544
1st edition
Authors: Sanjiv Jaggia, Alison Kelly
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