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Required information Liabilities for health and pension benefits, warranties, and bonuses are recorded with estimated amounts
Maas, Inc., sells washers and dryers that include a maximum one year warranty covering parts. Past experience shows that warr
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Answer #1

Estimated warranty liability = Sales x Percent of warranty expense

= 400,000 x 2%

= $8,000

Journal

Date

Account Title and Explanation

Debit

Credit

Dec 31 Warranty expense 8,000
Estimated warranty liability 8,000

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