eBook Show Me How Print Item Estimated Warranty Liability Savory Co sold $484,00

Question

eBook Show Me How Print Item Estimated Warranty Liability Savory Co sold $484,000 of equipment during January under a two-year warranty. The cost to repair defects under the warranty is estimated at 55% of the sales price. On August 15, a customer required a $335 part replacement, plus $188 of labor under the warranty. Required (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31 ournal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank. Aug. 15 Show allX Test 3a.rtf 10:13 AM 1/14/2017

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Dr CR a) Product Warranty expense Dr            26,620.00 To product warranty payable            26,620.00 (484,000*5.5%) b) Product warranty payable dr                  523.00 To Supplies                  335.00 To Wages payable                  188.00

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