Question

CT-21 ( S ) The accounting records of Off the Whool Ceramics included the following at January 1, 2018 (Click the loon to view the data.) In the past. Of the Wheel's warranty expense has been 5% of sales. During 2018. Of the Wheel made sales of $159,000 and paid $6,500 to satisfy warranty claims. Read the girements Requirement 1. Journalize Off the Wheel's warranty expense and warranty payments during 2018. Explanations are not required. (Record debit first, then credits Exclude explanations from journal entries.) Journalize the warranty expense Date Debit Credit

Answer 1

Solubion:- Recouivement 1': Journal Entries Debit(s) Creditt) Date ACCOunts warreinty EXpense 2018 $1.950 $ 1,950 Estimated warranty payable (to secord warsxanty expense) Estimated warranty Payable $ 6,500 2018 $ 6,500 Cash Lto tecord waryanty payments) GXplanatione = $ 159,000x 5:%. D waryanty Expense =$7,950 %3D

Requivement-2: Estimated wwarranby payable wo00 Beg. Bal. ACCoual 7,950 6,500 pay ments 5, 450 Bal End wheel vepoyt Estimaked warvanks payable on its balance sheet at Dec ,2018. Of $5,450

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