Question

Required information The following information applies to the questions displayed below) Prist Co. had not provided a warranty on its products, but competitive pressures forced management to add this feature at the beginning of 2019. Based on an analysis of customer complaints made over the past two years, the cost of a warranty - program was estimated at 0.4% of sales. During 2019, sales totaled $4.061000. Actual costs of servicing products under warranty totaled $20.700. a-2. Record the journal entry to show the effect of having the warranty program during 2019. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the accrual of estimated warranty expense for the year. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Event	General Journal	Debit	Credit
1	Warranty Expense	16,244
	Estimated Warranty Liability		16,244
	($4,061,000 x 0.4%)
2	Estimated Warranty Liability	16,244
	Warranty Expense	4,456
	Cash		20,700