1)
Date | Account titles and explanation | Debit | Credit |
2018 | Cash (700000*40%) | $280000 | |
Notes receivable (700000-280000) | $420000 | ||
Sales | $700000 | ||
(To record sales) | |||
2018 | Warranty expense (700000*7%) | $49000 | |
Estimated warranty payable | $49000 | ||
(To record warranty payable) | |||
2018 | Estimated warranty payable | $32000 | |
Cash | $32000 | ||
(To record warranty payment) | |||
2)
Estimated Warranty Payable | |||
Paid | 32000 | $0 | Beg. Bal. |
49000 | Accrued | ||
$17000 | End. Bal. |
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