Zinn Co. sold $500,000 of equipment during May under a one-year warranty. The cost to repair defects
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Zinn Co. sold $500,000 of equipment during May under a one-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On October 10, a customer required a $100 part replacement, plus $65 of labor under the warranty.
Provide the journal entry for
(a) The estimated warranty expense on May 31 and
(b) The October 10 warranty work.
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