### General Journal Entry Guide#### Page 1: General Journal TemplateThe image shows a template for recording entries in a general journal, which includes the following columns:- **Date**: This column is used to record the date on which the transaction occurred.- **Description**: In this column, a brief description of the transaction is written to provide context.- **Post. Ref. (Posting Reference)**: This column is used to include a reference number or code that indicates where the transaction is posted in the ledger.- **Debit**: This column is for the amount of money to be debited. Debits typically increase asset or expense accounts and decrease liability, equity, or revenue accounts.- **Credit**: This column is for the amount of money to be credited. Credits typically decrease asset or expense accounts and increase liability, equity, or revenue accounts.Two rows are provided for entering the transactions:1. Row 12. Row 2#### Instruction for Journal Entry- **(b) Provide the journal entry for the October 15 warranty work. Refer to the Chart of Accounts for exact wording of account titles.**#### Page 1: General Journal Entry for Warranty WorkAnother template is presented, identical to the first one, arranged in the same manner to record another set of entries:- **Date**: Record the date of the transaction.- **Description**: Brief description of the transaction.- **Post. Ref. (Posting Reference)**: Reference number or code for where the transaction is posted in the ledger.- **Debit**: Amount to be debited.- **Credit**: Amount to be credited.Three rows are provided for entering the transactions:1. Row 12. Row 23. Row 3This layout ensures clarity and uniformity when recording journal entries, facilitating easy tracking and verification of financial transactions, and it is essential to refer to the specific titles in the Chart of Accounts for precise and consistent account naming. ### Instructions**Ecco Company** sold **$145,000** of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at **9%** of the sales price. On **October 15**, a customer required a **$100** part replacement, plus **$86** 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 Accounts for exact wording of account titles.

The process of recording business transactions in the books of accounts for the first time is…

Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 9% of the sales price. On October 15, a customer required a $100 part replacement, plus $86 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 Accounts for exact wording of account tities

Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 9% of the sales price. On October 15, a customer required a $100 part replacement, plus $86 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 Accounts for exact wording of account tities

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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During December, Maxum Company sold 3,900 units of a product that carries a 60-day warranty. December sales for this product total $127,000. The company expects 6% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $19. Record the related adjusting entry.
Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 7.5% of the sales price. On November 10, a customer was given $93 cash under terms of the warranty. (a) Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. (b) Provide the journal entry for the November 10 cash payment. If an amount box does not require an entry, leave it blank.
Fitzpatrick Co. sold $391,000 of equipment during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 3% of the sales price. On August 15, a customer required a $110 part replacement plus $55 of labor under the warranty. Required: Provide the journal entry for (a) the estimated warranty expense on January 31 for January sales on page 10 of the journal and (b) the August 15 warranty work on page 14 of the journal. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
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Ecco Company sold $128,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 7% of the sales price. On October 15, a customer required a $100 part replacement, plus $80 labor under the warranty. a. Provide the journal entry for the estimated expense on September 30. If an amount box does not require an entry, leave it blank. b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank.
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Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 7.5% of the sales price. On November 10, a customer was given $93 cash under terms of the warranty. (a) Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. (b) Provide the journal entry for the November 10 cash payment. If an amount box does not require an entry, leave it blank.
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