Exam $1($Su$24)$

$02$:$12$:$36$

Question $1$ of $24$

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Flint Baking Company sells professional grade mixers for home use. The machines carry a $2-$year warranty. Past experience indicates that $6\%$ of the units sold will be returned during the warranty period for repairs. The average cost of repairs under warranty is $$100$ for labor and $$80$ for parts per unit. During $2020,2,950$ mixers were sold at an average price of $$800.$ During the year, $60$ of the machines that were sold were repaired at the average price per unit.

$($a$)$

Prepare the journal entry to record the repairs made under warranty. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

$$

$$