Question

Brief Exercise 8-56 (Algorithmic) Warranties In 2019, Lee Electronics, a franchise of electronics stores located in small towns throughout the United States, sold 750 32-inch televisions for $540 each. The televisions carry an attached 3-year warranty for repairs. Lee Electronics estimates that repair costs will average 3.5% of the total selling price. Required: 1. How much is recorded in the Warranty Liability account as a result of selling the televisions during 2019, assuming no warranty service has yet been performed? estimated warranty liability 2. Provide the necessary adjusting entry at December 31, 2019. Dec. 31 (Record warranty expense)

Answer 1

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