Book Show Me How Calculator Accrued Product Warranty Parker Manufacturing Co. wa
ID: 2561648 • Letter: B
Question
Book Show Me How Calculator Accrued Product Warranty Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 2.5% of sales. Assume that sales were $600,000 for January in February, a customer received For a compound transaction, if an amount box does not require an entry, leave it blank a. Journalize the adjusting entry required at lanuary 31·the end of the first month of the current fiscal year, to record the accrued product warranty warranty repairs requiring $200 of parts and $110 of labor. does not blank Product Warranty Expense Product Warranty Payable The accrued product warranty amount is recorded in the same period in which the sale is recorded, therefore following the matching concept. b. Journalize the entry to record the warranty work provided in February Product Warranty Payable Supplies Accounting numeric field Partially correct Check My WorkExplanation / Answer
Particulars Dr Cr Jan-31 Product Warranty Exp Dr(600000*2.5%) 15000 To Product Warranty Payable 15000 (Accrued product warranty exp booked) Feb Product Warranty Payable dr 310 To supplies 200 To Wages payable 110 (Warranty work recorded)