your answer in the boxes provide Not all boxes need to be completed. For general journal entries, narrations are NOT required and ignore GST. Make sure each Debit (Dr) and Credit (Cr) entry is typed in on a separate line within the Inspera text answer box. Account Debited Account Credited Debit $ Credit $

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter7: Payroll
Section: Chapter Questions
Problem 1.13C
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Patterson Limited offers a 12-month warranty for the sale of used motorbikes.  On 1 April 2021, the beginning of the financial year, there was a credit balance of $280,000 in its Warranty Provision account.  During the year ended 31 March 2022, Patterson Limited incurred $260,000 in warranty costs for spare parts.  At 31 March 2022, Patterson Limited estimated its liability for unexpired warranty contracts as $300,000. 

 

Prepare the necessary general journal entry to record the warranty claims, assuming an annual accounting period. 

Fill in your answer in the boxes provided. Not all boxes need to be completed. For general
journal entries, narrations are NOT required and ignore GST. Make sure each Debit (Dr) and
Credit (Cr) entry is typed in on a separate line within the Inspera text answer box.
Account Debited
Account Credited
Debit $
Credit $
Transcribed Image Text:Fill in your answer in the boxes provided. Not all boxes need to be completed. For general journal entries, narrations are NOT required and ignore GST. Make sure each Debit (Dr) and Credit (Cr) entry is typed in on a separate line within the Inspera text answer box. Account Debited Account Credited Debit $ Credit $
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