a company sells its product subject to a warranty that covers the cost of parts
ID: 2482642 • Letter: A
Question
a company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of the sale. warranty costs estimates to be 5% of sales. durng the month of july the company performed warranty work and used 11,000 of parts to perform the warranty work. sales for july were 450,000. record the warranty expense for the month of july.record the costs of the warranty work completed in june. if the the estimated warranty liability account had a credit balance of 10,000 on may 31, what is the account balance at june 30?
Explanation / Answer
Information regarding cost of warranty work performed is missing .
Date Account title Debit credit JUly warranty expense 22500 Warranty liability 22500 [warranty expense recorded] 450000*.05 june Warranty liability [11000* ?) ??(cost per part missing) cash [warranty work performed ]Related Questions
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