The accounting records of Sculpted Ceramics included the following at January 1, 2018: In the past, Sculpted's

Question:

The accounting records of Sculpted Ceramics included the following at January 1, 2018:

In the past, Sculpted's warranty expense has been 9% of sales. During 2018, Sculpted made sales of $113,000 and paid $7,000 to satisfy warranty claims.
Requirements
1. Journalize Sculpted's warranty expense and warranty payments during 2018. Explanations are not required.
2. What balance of Estimated Warranty Payable will Sculpted report on its balance sheet at December 31, 2018?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...