Marigold Factory provides a 2-year warranty with one of its products which was first sold in 2025. Marigold sold $940,900 of products subject to the warranty. Marigold expects $122,010 of warranty costs over the next 2 years. In that year, Marigold spent $74,460 servicing warranty claims. Prepare Marigold's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date During 2025 Account Titles and Explanation Cash Sales Revenue Warranty Expense I (To record payment for warranty costs incurred) Cash, Inventory, Wages Payable Cash Debit 940900 10 10 180 Credit 74460 940900 74460

Marigold Factory provides a 2-year warranty with one of its products which was first sold in 2025. Marigold sold $940,900 of products subject to the warranty. Marigold expects $122,010 of warranty costs over the next 2 years. In that year, Marigold spent $74,460 servicing warranty claims. Prepare Marigold's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date During 2025 Account Titles and Explanation Cash Sales Revenue Warranty Expense I (To record payment for warranty costs incurred) Cash, Inventory, Wages Payable Cash Debit 940900 10 10 180 Credit 74460 940900 74460

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 10E

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