Estimated warranty liability Savory sold $533,000 of consumer electronics during July under a two-year warranty. The...

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Estimated warranty liability Savory sold $533,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $187 cash under terms of the warranty. a. Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. July 31 Product Warranty Expense Product Warranty Payable 33 Feedback Check My Work Contingent liability entries are needed when the amount can be reasonably estimated and the liability is probable. Recorded contingent liabilities follow the matching concept. Contingent liabilities are an accrued expense adjusting entry. b. Provide the journal entry for the November 11 cash payment. If an amount box does not require an entry, leave it blank. Nov. 11 Product Warranty Payable Cash 88 Estimated warranty liability Savory sold $533,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $187 cash under terms of the warranty. a. Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. July 31 Product Warranty Expense Product Warranty Payable 33 Feedback Check My Work Contingent liability entries are needed when the amount can be reasonably estimated and the liability is probable. Recorded contingent liabilities follow the matching concept. Contingent liabilities are an accrued expense adjusting entry. b. Provide the journal entry for the November 11 cash payment. If an amount box does not require an entry, leave it blank. Nov. 11 Product Warranty Payable Cash 88