Kitty corporation started its business in 2021. It sold home computer equipment for $246,000 in 2021....

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Kitty corporation started its business in 2021. It sold home computer equipment for $246,000 in 2021. The company has provided a 2- year limited warranty for all sales. The company's estimate is that warranty costs for the first year will be 1.5% and will be 2% in the second year. kitty Corporation spent $3,650 on warranty repairs during 2021. a. Prepare all journal entries related to the warranty for 2021. b. How will the warranty liability be reported on the balance sheet on Dec 31, 2021? Date Account Debit Credit + Kitty corporation started its business in 2021. It sold home computer equipment for $246,000 in 2021. The company has provided a 2- year limited warranty for all sales. The company's estimate is that warranty costs for the first year will be 1.5% and will be 2% in the second year. kitty Corporation spent $3,650 on warranty repairs during 2021. a. Prepare all journal entries related to the warranty for 2021. b. How will the warranty liability be reported on the balance sheet on Dec 31, 2021? Date Account Debit Credit +

Answer rating: 100% (QA)

1 Date Account Titles and Explanation Debit Credit 2021 Estimated Warranty Liab... View the full answer