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:

Journal Entry for Estimated Warranty Expense : Sep-30 Warranty Expenses A/c Dr $9000 To…

Answered: Ecco Company sold $150,000 kitchen…

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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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:

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