93. Martok Company sells personal computers for $2.300 each. The price includes a two-year warranty. During 2015, the company sells 400 computers. On the basis of past experience, the warranty costs are estimated to be $250 per computer. The actual warranty costs paid by Martok during 2015 were $65,000. Prepare general journal entries to record the estimated warranty expense and the warranty payments during 2015.

93. Martok Company sells personal computers for $2.300 each. The price includes a two-year warranty. During 2015, the company sells 400 computers. On the basis of past experience, the warranty costs are estimated to be $250 per computer. The actual warranty costs paid by Martok during 2015 were $65,000. Prepare general journal entries to record the estimated warranty expense and the warranty payments during 2015.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please don't use chat gpt. Answer the two questions. This are just short. Thank you
Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 7.5% of the sales price. On November 10, a customer was given $93 cash under terms of the warranty. (a) Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. (b) Provide the journal entry for the November 10 cash payment. If an amount box does not require an entry, leave it blank.