Homework Answers
| Warranty expense = 90000*4% = $3600 |
| Journal entry to Record warranty expense is: |
| Debit Warranty expense, $3,600; credit Estimated warranty payable, $3,600 |
| Option C is correct |
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Northwest Electric had cash sales for the month totaling $90,000. Northwest offers a 6-month warranty on...
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covering parts on each snowmobile it sells. The following Tableau
Dashboard is provided to assist us.
Estimated Warranty Expense vs. Actual Warranty Claims
Purple Graph
Actual warranty claim: $17,660 (1 year ago)
Actual warranty claim: $21,660 (2 years ago)
Actual warranty claim: $13,070 (3 years ago)
Actual warranty claim: $12,122 (4 years ago)
Orange Graph
Estimated warranty expense: $14,800 (1...
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Seved Help Save & Exit A company estimates that warranty expense will be 2% of sales. The company's sales for the current period are $170,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $3.400 credit Sales $3,400. Debit Warranty Expense $3,400 credit Estimated Warranty Liability $3,400 Debit Estimated Warranty Liability $3,400 credt Warranty Expense $8,400. Debit Estimated Warranty Liability $3,400 credit Cash $3,400 No entry is recorded until the items are returned for...
We are hired as consultants to assist Arctica Co. in accounting
for its warranty expenses. Arctica offers a one-year warranty
covering parts on each snowmobile it sells. The following Tableau
Dashboard is provided to assist us.
Estimated Warranty Expense vs. Actual Warranty Claims
Purple Graph
Actual warranty claim: $17,660 (1 year ago)
Actual warranty claim: $21,660 (2 years ago)
Actual warranty claim: $13,070 (3 years ago)
Actual warranty claim: $12,122 (4 years ago)
Orange Graph
Estimated warranty expense: $14,800 (1...
4. Graham guarantees its vacuums for three years. Prior experience indicates that warranty costs will be approximately 7% of sales. Assume that Graham made sales totaling $190,000 during 2018. Record the warranty expense for the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Warranty Expense 13,300 Estimated Warranty Payable 13,300 To accrue warranty payable. Cash paid for warranties. No entry required. To accrue warranty...
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