Ecco Company sold $150,000 kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 6% of the sales price. On October 15, a customer required a $200 part replacement plus $85 labor under the warranty. Provide the journal entry for: The estimated warranty expense on September 30: The October 15 warranty work:

Ecco Company sold $150,000 kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 6% of the sales price. On October 15, a customer required a $200 part replacement plus $85 labor under the warranty. Provide the journal entry for: The estimated warranty expense on September 30: The October 15 warranty work:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9MC: Blake Department Store sells television sets with one-year warranties that cover repair and...

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Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000
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Ecco Company sold $155,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 5% of the sales price. On October 15, a customer required a $120 part replacement, plus $90 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.
Ecco Company sold $158,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 5% of the sales price. On October 15, a customer required a $140 part replacement, plus $86 labor under the warranty. a. Provide the journal entry for the estimated expense on September 30. b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank. Cash Product Warranty Expense Product Warranty Payable Repairs Expense Wages Payable
Fantastic Co. sold $150,000 of kitchen appliances during August under a six month warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On September 12, a customer required a $2000 part replacement plus $90 of labor under the warranty. Journal entry to record estimated warranty expenses will be: Select one: a. Provision for product warranty Dr 9,000 Warranty Expenses Cr 9,000 b. Provision for product warranty Dr 2090 Warranty Expenses Cr 2090 c. Right option is not listed d. Warranty Expenses Dr 7,500 Provision for product warranty Cr 7,500
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A company sells its products subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 6% of sales. During the month of June, the company performed warranty work and used $12,000 of parts to perform the warranty work. Sales for June were $450,000. Record the warranty expense for the month of June in the general journal for Problem 7. Record the costs of the warranty work completed in June in the general journal for Problem 7. When journal entries are complete, upload the general journal to this problem. If the Estimated Warranty Liability account had a credit balance of $10,000 on May 31, what is the account balance at June 30? __________________________________
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Ecco Company sold $150,000 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 $200 part replacement, plus $84 labor under the warranty. a. Journalize the entry for the estimated expense on September 30. If an amount box does not require an entry, leave it blank. fill in the blank 068e4ff7d019fb4_2 fill in the blank 068e4ff7d019fb4_3 fill in the blank 068e4ff7d019fb4_5 fill in the blank 068e4ff7d019fb4_6 b. Journalize the entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank.