Franconia Sales offers warranties on all their electronic goods. Warranty expense is estimated at 2% of...

 

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Franconia Sales offers warranties on all their electronic goods. Warranty expense is estimated at 2% of sales revenue. In 2019, Franconia had $500,000 of sales. In the same year, Franconía paid out $7,500 of warranty payments. Which of the following is the entry needed to record the estimated warranty expense? Warranty expense Estimated warranty payable Warranty expense Sales revenue Estimated warranty payable Cash Warranty expense Estimated warranty payable 10,000 10,000 7,500 7,500 10,000 10,000 7,500 7,500 Franconia Sales offers warranties on all their electronic goods. Warranty expense is estimated at 2% of sales revenue. In 2019, Franconia had $500,000 of sales. In the same year, Franconía paid out $7,500 of warranty payments. Which of the following is the entry needed to record the estimated warranty expense? Warranty expense Estimated warranty payable Warranty expense Sales revenue Estimated warranty payable Cash Warranty expense Estimated warranty payable 10,000 10,000 7,500 7,500 10,000 10,000 7,500 7,500

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