Cook-Rite Co. sold $512,000 of equipment during January under a two-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On August 15, a customer required a $293 part replacement, plus $224 of labor under the warranty. Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales. accounts payable/cash/product warranty expense/product warranty payable/wages payable Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank. accounts payable/cash/product warranty expense/product warranty payable/product warranty expense/supplies Aug. 15
Estimated Warranty Liability
Cook-Rite Co. sold $512,000 of equipment during January under a two-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On August 15, a customer required a $293 part replacement, plus $224 of labor under the warranty.
Required:
(a) Provide the
accounts payable/cash/product warranty expense/product warranty payable/wages payable
| Jan. 31 | |||
(b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank.
accounts payable/cash/product warranty expense/product warranty payable/product warranty expense/supplies
| Aug. 15 | |||
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