Question

arks People Window Help CH 11 HW X CengageNOWV2 Online ta C Proceeds From Notes Payable: x + com/li/takeAssignment/takeAssignment Main.do?invokerStakeAssignmentSessionLocator &inprogressefalse Show Me How Calculator Estimated Warranty Liability Yummy Co. sold $744,000 of equipment during January under a two-year warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. On August 15, a customer required a $258 part replacement, plus $181 of labor under the warranty Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales lan Product Warranty Expense Product Warranty Payable Check My Work Contingent liability entries are needed when the amount can be reasonably estimated and the ability is probable. Recorded contingent abilities folow the matching concept Continentabilites are an accrued expense adjusting entry (b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank. Aug 15 Product Warranty Payable Supplies Wages Payable Why Work What resource is the company using to satisfy the warranty? < Previous Next > Check My Work work saved. Save and Exit Submit Assignment for Grading 3 w x e o

Answer 1

Transaction	Date	Account Titles	Debit	Credit
			$	$
a.	Jan 31	Product Warranty Expense	44,640
		Product Warranty Payable		44,640
		To record estimated warranty expense
b.	Aug 15	Product Warranty Payable	439
		Supplies		258
		Wages Payable		181
		To record expenses to satisfy warranty claim