Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of...

  

Transcribed Image Text:

Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $174,000 for January. In February, a customer received warranty repairs requiring $155 of parts and $95 of labor. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. Product Warranty Expense Product Warranty Payable 5,220 V 5,220 Feedback Check My Work The accrued product warranty amount is recorded in the same period in which the sale is recorded, therefore following the matching concept. b. Journalize the entry to record the warranty work provided in February. Product Warranty Expense Product Warranty Payable X 155 X X 95 X Cash X 250 X Feedback Check My Work Consider what resources the company will have to use in order to satisfy the warranty. Feedback Check My Work Partially correct Check My Work Email Instructor Save and Exit Previous Submit Assignment for Grading Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $174,000 for January. In February, a customer received warranty repairs requiring $155 of parts and $95 of labor. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. Product Warranty Expense Product Warranty Payable 5,220 V 5,220 Feedback Check My Work The accrued product warranty amount is recorded in the same period in which the sale is recorded, therefore following the matching concept. b. Journalize the entry to record the warranty work provided in February. Product Warranty Expense Product Warranty Payable X 155 X X 95 X Cash X 250 X Feedback Check My Work Consider what resources the company will have to use in order to satisfy the warranty. Feedback Check My Work Partially correct Check My Work Email Instructor Save and Exit Previous Submit Assignment for Grading