In 2105, Alkhaleej Inc. sold its new smart phone product with a two year warranty against...

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In 2105, Alkhaleej Inc. sold its new smart phone product with a two year warranty against factory defects. Based on the experience, the management expected that the defects rate is 4% of sales. The company sold 1,000,000 units of its new smart phone. Required Record the appropriate transactions for the following: 1) Issuing warranties 2) Appropriate Transactions at the end of the year. If only 25,000 warranties were claimed. In 2105, Alkhaleej Inc. sold its new smart phone product with a two year warranty against factory defects. Based on the experience, the management expected that the defects rate is 4% of sales. The company sold 1,000,000 units of its new smart phone. Required Record the appropriate transactions for the following: 1) Issuing warranties 2) Appropriate Transactions at the end of the year. If only 25,000 warranties were claimed.

Answer rating: 100% (QA)

1 Issuing warranties Date January 1 2105 Debit Warranty Expense 4 of sales 40000 units Credit Warran... View the full answer