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

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

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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