Question: Prepare the adjusting entries on December 31, 2019, using the following information, assuming that the books have not been closed: 1) The company is estimated
Prepare the adjusting entries on December 31, 2019, using the following information, assuming that the books have not been closed: 1) The company is estimated the warranty cost for the year will be 10% of the total sale of $200,000. The balance for provision for warranty at the beginning of the year was $18,000 2) The company has paid $18,000 for insurance at January 1, 2019. This amount will cover the period to December 31, 2020. At the end of the year 2019, no entry has been made regarding this information 3) The cash paid to suppliers of $200 has been accidentally recorded at the value of $20. 4) The company has made a credit sale of $2,000 to customers with a cash discount of 5% if the payment is made within 20 days. The customer settles her debt after 8 days. The company failed to record the cash discount.
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