June 11 a retailer sells a trimmer for $400 with a one-year warranty that covers parts. Warranty expense is estimated at 5% of sales. On March 24 of the next year, the trimmer is brought in for repairs covered by warranty requiring $15 in materials. The entry to record the warranty repair on March 24th would include a.. Group of answer choices a. Credit to Estimated Warranty Liability for $15.00 b. Credit to Repair Parts Inventory for $15.00 c. Debit to Warranty Expense for $15.00 d. Debit to Warranty Expense for $20.00

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

Accrued Product Warranty Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 5% of sales. Assume that sales were $327,000 for January. In February, a customer received warranty repairs requiring $135 of parts and $75 of labor. For a compound transaction, if an amount box does not require an entry, leave it blank. 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.                 b.  Journalize the entry to record the warranty work provided in February.

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. ___________   _______ _______

Fantastic Co. sold $150,000 of kitchen appliances during August under a six month warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On September 12, a customer required a $2000 part replacement plus $90 of labor under the warranty. Journal entry to record estimated warranty expenses will be: Select one: a. Provision for product warranty Dr 9,000 Warranty Expenses Cr 9,000 b. Provision for product warranty Dr 2090 Warranty Expenses Cr 2090 c. Right option is not listed d. Warranty Expenses Dr 7,500 Provision for product warranty Cr 7,500

Instructions On August 1, Year 1, Pereira Corporation has sold 1,800 Wiglows to Mendez Company at $450 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $12 per unit. In Year 1, On December 31, Pereira recorded warranty costs incurred in Year 1 of $9,000. Warranty costs for Year 2 of $9,600 were recorded on July 31. General Journal 1. Prepare the necessary journal entries to record: Year 1 entries should be recorded in page 1, Year 2 entries should be recorded in page 2. 1 General Journal Instructions 2 3 Required: 1. Prepare the journal entries for the preceding transactions. 2. Show how Pereira would report the items on the December 31, Year 1, balance sheet. 4 5 6 1. The sale of Wiglows and service warranty on account on August 1, Year 1 2. The warranty costs paid during Year 1 3. The warranty revenue earned in Year 1 4. The warranty costs paid during Year 2 5. The warranty revenue earned in Year 2 7 DATE GENERAL JOURNAL ACCOUNT TITLE POST. REF. DEBIT…

Estimated Warranty Liability Cook-Rite sold $152,000 of consumer electronics during July under a one-year warranty. The cost to repair defects under the warranty is estimated at 6.5% of the sales price. On November 10, a customer was given $108 cash under terms of the warranty. (a) Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. July 31 (b) Provide the journal entry for the November 10 cash payment. If an amount box does not require an entry, leave it blank. 88 Nov. 10

Puzzles Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 3,700 units. It is estimated that warranty repairs will average $16 per unit sold, and 40% of the repairs will be made in Year 1 and 60% in Year 2. In the income statement for Year 1, Puzzles Company should show warranty expense of a. $35,520. b. $23,680. c. $0. d. $59,200.