Based on past experience, Ting estimates that 3% of the units sold will become defective during...

  

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Based on past experience, Ting estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit EI1.9 (LO 2) Ting Manufacturing sells its products with a 75-day warranty for defective merchandise. is NTSIS (amounts in thousands). The units sold and units defective that occurred durieg the a months of 2020 are as follows. Units Units Defective Prior to December 31 Month Sold November 30,000 600 December 32,000 400 Instructions a. Prepare the journal entries to record the provision for warranties and the costs incurred in b 1,000 warranty claims. (Assume actual costs of NTS15,000.) b. Determine the estimated warranty liability at December 31 for the units sold in Novemher December. c. Give the entry to record the honoring of 500 warranty contracts in January at an average co NTS15. Based on past experience, Ting estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit EI1.9 (LO 2) Ting Manufacturing sells its products with a 75-day warranty for defective merchandise. is NTSIS (amounts in thousands). The units sold and units defective that occurred durieg the a months of 2020 are as follows. Units Units Defective Prior to December 31 Month Sold November 30,000 600 December 32,000 400 Instructions a. Prepare the journal entries to record the provision for warranties and the costs incurred in b 1,000 warranty claims. (Assume actual costs of NTS15,000.) b. Determine the estimated warranty liability at December 31 for the units sold in Novemher December. c. Give the entry to record the honoring of 500 warranty contracts in January at an average co NTS15.

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