Please help me Ecco Company sold $127,000 of kitchen appliances with six-month warranties during September. The ocost to repair defects under the warranty is estimated at 5%of the sales price. On October 15, a customer required a $240 part replacement, plus $84 labor under the warranty.Required:Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work. Refer to the Chart of Accountsfor exact wording of account titles.

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Ecco Company sold $127,000 of ktchen appliances with six month warranties during September. The cost to repair detects under the warranty is estimated at 5% of the sales price On October 15, a customer required a $240 part replacement, plus s84 labor under the warranty. Required: Provide the oumal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work. Reter to the Chart of Accounts for exact wording of account tes.

Ecco Company sold $127,000 of ktchen appliances with six month warranties during September. The cost to repair detects under the warranty is estimated at 5% of the sales price On October 15, a customer required a $240 part replacement, plus s84 labor under the warranty. Required: Provide the oumal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work. Reter to the Chart of Accounts for exact wording of account tes.

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
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