count titles are a
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 6MC
Related questions
Question
![Prepare the journal entry to record the warranty liability at December 31 for the units sold in November and December. (Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e0cd55c-6f84-412a-ac81-9a79eaea810f%2Fb5596570-1ac4-43cc-986d-3dcaef3999d9%2F4aw3x84_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the journal entry to record the warranty liability at December 31 for the units sold in November and December. (Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
![Bramble Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience,
Bramble estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the
average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months
of 2022 are as follows.
Month
Units Sold
Units Defective Prior to December 31
November
32,000
640
December
34,000
425
(a)
Your Answer
Correct Answer
Your answer is partially correct.
Prepare the journal entry to record the costs incurred in honoring 1,065 warranty claims. (Assume actual costs of $21,300.)
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Warranty Expense
21,300
Notes Payable
21,300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e0cd55c-6f84-412a-ac81-9a79eaea810f%2Fb5596570-1ac4-43cc-986d-3dcaef3999d9%2Fqu95xyd_processed.png&w=3840&q=75)
Transcribed Image Text:Bramble Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience,
Bramble estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the
average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months
of 2022 are as follows.
Month
Units Sold
Units Defective Prior to December 31
November
32,000
640
December
34,000
425
(a)
Your Answer
Correct Answer
Your answer is partially correct.
Prepare the journal entry to record the costs incurred in honoring 1,065 warranty claims. (Assume actual costs of $21,300.)
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
Warranty Expense
21,300
Notes Payable
21,300
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning