Homework Chapter 8 Cornerstone Exercise 8-31 (Algorithmic) Warranties 1. CE-08.19 2. 08 25 ALGO In 2019, BMJ Plumbing Company sold 490 water heaters for $840 each. The water heaters carry a 2-year warranty for repairs. BMJ Plumbing estimates that repair costs will average 1% of the total selling price. 3. CE0828 4. CE.08.29 ALGO 5. CE 08.31 ALGOo 6. BE.08.35 7. BE.08.36 8. .08.40ALGO Required: 1. How much is recorded in the warranty liability account as a result of selling the water heaters during 2019, assuming no warranty service has yet been performed? Feedback Check My Work 1. Warranty expense should be matched with the revenues it helped generate. As such, future wa 9. PR.08.75A 2. Prepare the necessary adjusting entry at December 31, 2019. Dec. 31 Warranty Expense Warranty Liability (Record warranty expense) Feedback Check My Work 2. Warranty expense should be matched with the revenues it helped generate. As such, future warm Feedback Check My Work Partially correct Check My Work Progress: 5/9 items Previous Next