On December 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Warranty expense is estimated at 7% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Parts Inventory. Prepare the December 1 entry to record the mower sale (and cost of sale), the December 31 adjusting entry for estimated warranty liability, and the January 24 entry to record the warranty repairs. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet 1 2 3 Record the mower sales. 4
On December 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Warranty expense is estimated at 7% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Parts Inventory. Prepare the December 1 entry to record the mower sale (and cost of sale), the December 31 adjusting entry for estimated warranty liability, and the January 24 entry to record the warranty repairs. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet 1 2 3 Record the mower sales. 4
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 9MC: Blake Department Store sells television sets with one-year warranties that cover repair and...
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