During December, Hill Company sells $868,000 in merchandise that has a one-year warranty, Warranty expense is...

 

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During December, Hill Company sells $868,000 in merchandise that has a one-year warranty, Warranty expense is estimated at 4% of sales. On January 5 of the following year, the merchandise requires repairs that are completed the same day. The repairs cost $15,800 for materials taken from parts inventory. The entry to record the estimated warranty liability at the end of December is: Multiple Choice Debit Warranty Expense $15,800; credit Estimated Warranty Liability $15,800 Debit Warranty Expense $34,720, credit Estimated Warranty Liability $34,720 Debit Estimated Warranty Liability $15,800, credit Warranty Expense $15,880. Debit Warranty Expense $18.920, credit Estimated Warranty Liability $18,920. Debit Estimated Warranty Liability $18,920, credit Warranty Expense $18.920 During December, Hill Company sells $868,000 in merchandise that has a one-year warranty, Warranty expense is estimated at 4% of sales. On January 5 of the following year, the merchandise requires repairs that are completed the same day. The repairs cost $15,800 for materials taken from parts inventory. The entry to record the estimated warranty liability at the end of December is: Multiple Choice Debit Warranty Expense $15,800; credit Estimated Warranty Liability $15,800 Debit Warranty Expense $34,720, credit Estimated Warranty Liability $34,720 Debit Estimated Warranty Liability $15,800, credit Warranty Expense $15,880. Debit Warranty Expense $18.920, credit Estimated Warranty Liability $18,920. Debit Estimated Warranty Liability $18,920, credit Warranty Expense $18.920

Answer rating: 100% (QA)

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