Maurice Tutor

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Category > Accounting Posted 20 Aug 2017 My Price 4.00

Chloe Co.

PE 10-7A Estimated warranty liability                                                             

Chloe Co. sold $300,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On June 20, a customer required a $90 part replacement, plus $42 of labor under the  warranty.

Provide the journal entry for (a) the estimated warranty expense on January 31 for January sales, and (b) the June 20 warranty work.

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Aug 2017 07:08 PM My Price 4.00

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