The following transactions of Oscar Landing occurred during 2016: Apr. 30 Landing is a party to a
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The following transactions of Oscar Landing occurred during 2016:
Apr. 30 | Landing is a party to a patent infringement lawsuit of $220,000. Landing's attorney is certain it is remote that Landing will lose this lawsuit. |
Jun. 30 | Estimated warranty expense at 2% of sales of $420,000. |
Jul. 28 | Warranty claims paid in the amount of $5, 800. |
Sep. 30 | Landing is a party to a lawsuit for a copyright violation of $110,000. Landing's attorney advises that it is probable Landing will lose this lawsuit. The attorney estimates the loss at $110,000. |
Dec. 31 | Landing estimated warranty expense on sales for the second half of the year of $460,000 at 2%. |
1. Journalize required transactions, if any, in Landings general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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