Question

Question Help The following transactions of Sandy Crus occurred during 2018 Click the icon to view the transachons) Requirements 1. Journalize required transactions, any, in Cur's general journal. Explanations are not required 2. What is the balance in Estimated Warranty Payable assuming a beginning balance of 507 Requirement 1. Journal required transactions, if any, in Cur's general joumal Explanations are not required. Record debitis fint, then credits. Exclude not require an entry, make sure to select "No entry required in the first call in the "Accounts column and love all other colis ) plations from journal entries for transactions that de More Info ose this lawsuit Apr Apr 30 Jun 30 Jul 28 Sep 30 Cruz is party to a patent infringement lawsuit of $220,000. Crue's attomey is certain it is remote that Cruz will lose this lawsuit Estimated warranty expense at 4% of sales of $360,000. Warranty claims paid in the amount of $6.400 Cruz is party to a lawsuit for copyright violation of $150,000. Cruz's attorney advises that is probable Cruz will lose this lawsuit. The attorney estimates the loss at $150,000 Cruz estimated warranty expense on sales for the second half of the year of $500,000 at Jun Choog Dec 31

Answer 1

Requirement 1:

Date	Account title and explanation	Debit	Credit
Apr 30	Warranty expense	$220,000
	Warranty liability		$220,000
	[To record warranty expense]
Jun 30	Warranty expense [360,000 x 4%]	$14,400
	Warranty liability		$14,400
	[To record warranty expense]
Jul 28	Warranty liability	$6,400
	Cash		$6,400
	[To record payment of warranty claims]
Sep 30	Warranty expense	$150,000
	Warranty liability		$150,000
	[To record warranty expense]
Dec 31	Warranty expense [500,000 x 4%]	$20,000
	Warranty liability		$20,000
	[To record warranty expense]

Requirement 2:

Estimated warranty payable
Beginning	$0
Apr 30	$220,000
Jun 30	$14,400
Jul 28 collection	($6,400)
Sep 30	$150,000
Dec 31	$20,000
Ending	$398,000