A company sells its products subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale.  Warranty costs are estimated to be 6% of sales.  During the month of June, the company performed warranty work and used $12,000 of parts to perform the warranty work.  Sales for June were $450,000.   Record the warranty expense for the month of June in the general journal for Problem 7. Record the costs of the warranty work completed in June in the general journal for Problem 7. When journal entries are complete, upload the general journal to this problem. If the Estimated Warranty Liability account had a credit balance of $10,000 on May 31, what is the account balance at June 30?

Milan Company sold $270,000 of equipment during May under a one-year warranty. The cost to repair defects under the warranty is estimated at 3% of the sales price. On December 21, a customer required a $90 part replacement plus $ 40 of labor under the warranty. Journalize the entry for the estimated warranty expense and for the warranty work.

Back in Time Inc. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $1,250,000 for March. In April, a customer received warranty repairs requiring $750 of parts. a.  Determine the warranty liability at March 31, the end of the first month of the current fiscal year.$fill in the blank 1 b.  What accounts are decreased for the warranty work provided in April?

Vaibhav

Accrued product warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 5% of sales. Assume that sales were $359,000 for January. On February 7, a customer received warranty repairs requiring $240 of parts and $80 of labor. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank. 000 000

On December 1, XYZ Limited introduces a new product that includes a one-year warranty on parts. In November, 1000 units are sold. Management believes that 15% of the units will be defective and that the average warranty costs will be $50 per unit. Prepare the adjusting entry at November 30 to accrue the estimated warranty cost.

Alpesh

During August, Boxer Company sold $362,000 in merchandise that has a one-year warranty. Based on past experience, warranty expenses are estimated to be about 5% of total sales revenue. Boxer used $8,800 in parts for warranty repairs on merchandise that customers returned. Which of the following statements is correct about the estimated warranty expense for the month? O No recording is needed because the warranty expense is estimated. Boxer's estimated warranty Expense increased by $18,100 this month. O Boxer's estimated warranty liabilities had no change this month. O Boxer's estimated warranty expense decreased by $8,800 this month.

Emperor Pool Services provides pool cleaning and maintenance services to residential clients. It offers a one-year warranty on all services. Review each of the transactions: A. March 31: Emperor provides cleaning services for 25 pools during the month of March at a sales price per pool of $610 cash. Emperor records warranty estimates when sales are recognized and bases warranty estimates on 1 percent of sales. B. April 5: A customer files a warranty claim that Emperor honors in the amount of $130 cash. C. April 13: Another customer, J. Jones, files a warranty claim that Emperor does not honor due to customer negligence. D. June 8: J. Jones files a lawsuit requesting damages related to the dishonored warranty in the amount of $2,100. Emperor determines that the lawsuit is likely to end in the plaintiff's favor and the $2,100 is a reasonable estimate for damages. Prepare any necessary journal entries for each situation. If an amount box does not require an entry, leave it blank. If no…

Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $202,000 for January. On February 7, a customer received warranty repairs requiring $140 of parts and $105 of labor. Question Content Area a.  Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. _______   _______ ______           Question Content Area b.  Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank. ___________   _______ _______