The expense has been 5 percent of sales. During 2016, Stevens Books made sales o

Q: The expense has been 5 percent of sales. During 2016, Stevens Books made sales o

1. 2. Estimated warranty payable on December 31, 2016 Balance Sheet = $11000 + $22500 - $5000 = $28500 Warranty expense on income statement for year ended December 31, 2016: $22500 Journal Entry Date Accounts Debit Credit Accounts receivable 450000 Sales revenue 450000 Warranty expense (5% x $450000) 22500 Estimated warranty payable 22500 Estimated warranty payable 5000 Cash 5000

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The expense has been 5 percent of sales. During 2016, Stevens Books made sales of $450,000 on account and paid $5,000 to satisfy warranty claims. Read the a balance of $11,000 in Estimated warranty payable at December 31, 2015. In the past, Requirement 1. Journalize Stevens Books' sales, warranty expense, and cash payments made to satisty warranty claims during 2016. Explanations are not required ignore cost of goods sold. (Record debits first, then credits. Exclude explanations from any journal entries.) Stevens Books' sales. Ignore cost of goods sold. Journal Entry Date Accounts Debit Credit 16500 16500

Explanation / Answer

2. Estimated warranty payable on December 31, 2016 Balance Sheet = $11000 + $22500 - $5000 = $28500

Warranty expense on income statement for year ended December 31, 2016: $22500

Journal Entry Date Accounts Debit Credit Accounts receivable 450000 Sales revenue 450000 Warranty expense (5% x $450000) 22500 Estimated warranty payable 22500 Estimated warranty payable 5000 Cash 5000

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The expense account, Salaries Expense, has an unadjusted balance of $151,000 on

The expenses and income of an individual are given in table form to the right. I

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The expense has been 5 percent of sales. During 2016, Stevens Books made sales o

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