The accounting records of Foustic Ceramics included the folowing at January 1, 2

Question

The accounting records of Foustic Ceramics included the folowing at January 1, 2018 EEB (Cick the ican to view the data) In the past, Rustie's waranty expense has been 6% of sales During 2018. ustic made sales of $153,000 and paid $5,500 t0 satisfy wamanty claims Read the requrements Requirement 1. Joumalize Rustic's warranty expense and warranty payrments during 2018. Explanations are not required. (Record debits first, then credits Exclu explanations from joumal entries) Journalize the warrenty expense Date Aocounts Debit Credit Requirements ? 1. Jounalize Rustic's warranty expense and warranty payments during 2018. Explanations are not required 2. What balance of Estimated Warranty Payable will Rustic report on its balance sheet at December 31, 2018 Print Done

Explanation / Answer

Journal entry :

2) Estimated warranty payable in balance sheet december 31,2018 = (9180-5500) = 3680

Date accounts & explanation debit credit Warranty expense (153000*6%) 9180     Estimated warranty liability 9180 (To record warranty expense) Estimated warranty liability 5500      Cash 5500 (To record payment of warranty)

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