Question: Problem 3 (7.5 points) Pluto, Inc., sells its products with a one-year warranty. The estimated product warranty is 3% of sales. Assume that Pluto had

Problem 3 (7.5 points) Pluto, Inc., sells its products with a

Problem 3 (7.5 points) Pluto, Inc., sells its products with a one-year warranty. The estimated product warranty is 3% of sales. Assume that Pluto had sales of $284,000 during October this year. On November 12, a customer received warranty repairs requiring $72 of parts and $100 of labor. Required: 1. Record the adjusting entry to accrue warranty expense on October 31. 2. Record the journal entry for the warranty work provided in November. Account Title Debit Credit

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