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eBook   Show Me How Print Item Question Content Area Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $185,000 for January. On February 7, a customer received warranty repairs requiring $160 of parts and $75 of labor.   a.  Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. blank   Product Warranty Expense Product Warranty Expense     Cash Cash   Feedback Area   Feedback     b.  Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank.

eBook   Show Me How Print Item Question Content Area Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $185,000 for January. On February 7, a customer received warranty repairs requiring $160 of parts and $75 of labor.   a.  Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. blank   Product Warranty Expense Product Warranty Expense     Cash Cash   Feedback Area   Feedback     b.  Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank.

FINANCIAL ACCOUNTING
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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Accrued Product Warranty

Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $185,000 for January. On February 7, a customer received warranty repairs requiring $160 of parts and $75 of labor.

 

a.  Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank.

blank
 
 Product Warranty Expense Product Warranty Expense
 
 
 Cash Cash
 

Feedback Area

 
Feedback
 

 

b.  Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank.

Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $185,000 for January. On February 7, a customer received warranty repairs requiring $160 of parts and $75 of labor. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave blank. Product Warranty Expense ✓ 5,550 ✓ Cash -X Feedback ►Check My Work b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank. Product Warranty Expense 395 X Accounts Payable 75 X Accounts Receivable Feedback Check My Work Feedback X Check My Work Partially correct 5,550 X Consider what resources the company will have to use in order to satisfy the warranty. 470 X
Transcribed Image Text:Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $185,000 for January. On February 7, a customer received warranty repairs requiring $160 of parts and $75 of labor. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave blank. Product Warranty Expense ✓ 5,550 ✓ Cash -X Feedback ►Check My Work b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank. Product Warranty Expense 395 X Accounts Payable 75 X Accounts Receivable Feedback Check My Work Feedback X Check My Work Partially correct 5,550 X Consider what resources the company will have to use in order to satisfy the warranty. 470 X
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