Cullumber Corporation has been experiencing a higher than expected number of warranty claims in the current year, due mainly to less than ideal product design. For this reason, the warranty expense percentage used was changed from 2% to 3% of sales. The warranty expense for the current year was calculated using the new rate of 3% of sales. The controller estimates that if the new rate had been used in the past, an additional $200,000 worth of warranty expense would have been recorded. Do not give answer in image

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cullumber Corporation has been experiencing a higher than expected number of warranty claims in the current year, due mainly to less than ideal product design. For this reason, the warranty expense percentage used was changed from 2% to 3% of sales. The warranty expense for the current year was calculated using the new rate of 3% of sales. The controller estimates that if the new rate had been used in the past, an additional $200,000 worth of warranty expense would have been recorded.

Do not give answer in image 

What journal entry, if any, should Cullumber record at the end of its fiscal year, December 31, 2023? (List debit entry before credit
entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:What journal entry, if any, should Cullumber record at the end of its fiscal year, December 31, 2023? (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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