Question

The accounting records of Off the Wheel Ceramics included the following at January 1, 2018 (Click the icon to view the data) In the past, Off the Wheels warranty expense has been 3% of sales During 2018 Off the Wheel made sales of $128.000 and paid $5.500 to satisfy warranty dams Read the requirements Requirement 1. Journalize Off the Wheel's warranty expense and warranty payments during 2018. Explanations are not required. (Record debits first, then credits Exclude explanations from journal entries) Journalize the warranty expense Date Accounts Debit Credit Warranty Expense Estimated Warranty Payable Journalize the warranty payments Accounts Debi stimated Warranty Payable Cash 5.500 Requirement 2. What balance of Estimated Warranty Payable will off the Wheel report on its balance sheet at December 31, 2018? Use the account to determine the ending balance for the Estimated Warranty Payable account. Use an "End Bal" posting reference to show the ending balance of the account. The beginning balance (Beg Bal) has been entered for you Estimated Warranty Payable 2.000 Beg Ball Payments 5540 340 End Bal

Answer 1

Solution 2:

Estimated warranty Payable
Particulars	Debit	Credit	Particulars
Payments	$5,500.00	$2,000.00	Beg. Bal.
		$3,840.00	Warranty expense
		$340.00	End Bal.