What would be the journal entry to record the estimated liability for warranty on Dec. 31? *a. A debit to Warranty Expense of P 123,000 and a credit to Warranty Liability of P 123,000b. A debit to Warranty Expense of P 150,000 and a credit to Warranty Liability of P 150,000c. A debit to Warranty Expense of P 75,000 and a credit to Warranty Liability of P 75,000d. A debit to Warranty Expense of P 61,500 and a credit to Warranty Liability of P 61,500 LEYI Co., sells an electric timer that carries a 90-day unconditional warranty against product failure.The warranty costs of known failures have already been reflected in the records.Based on reliable statistical analysis, 2% of units sold will require an average cost of P 150 per unitOctoberNovemberDecemberUnits sold16,00014,00020,000Known product failures from sale of:October8016080November40140December90

Warranty is a form of assurance that is being given to the buyer that in case product will have any…

What would be the journal entry to record the estimated liability for warranty on Dec. 31? * a. A debit to Warranty Expense of P 123,000 and a credit to Warranty Liability of P 123,000 b. A debit to Warranty Expense of P 150,000 and a credit to Warranty Liability of P 150,000 c. A debit to Warranty Expense of P 75,000 and a credit to Warranty Liability of P 75,000 d. A debit to Warranty Expense of P 61,500 and a credit to Warranty Liability of P 61,500

What would be the journal entry to record the estimated liability for warranty on Dec. 31? * a. A debit to Warranty Expense of P 123,000 and a credit to Warranty Liability of P 123,000 b. A debit to Warranty Expense of P 150,000 and a credit to Warranty Liability of P 150,000 c. A debit to Warranty Expense of P 75,000 and a credit to Warranty Liability of P 75,000 d. A debit to Warranty Expense of P 61,500 and a credit to Warranty Liability of P 61,500

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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