Martinez Factory provides a 2-year warranty with one of its products which was first sold in 2025. Martinez sold $909,800 of products subject to the warranty. Martinez expects $124,480 of warranty costs over the next 2 years. In that year, Martinez spent $73,090 servicing warranty claims. Prepare Martinez's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. List all debit entries before credit entries.) Date During 2025 12/31/25 Account Titles and Explanation (To record payment for warranty costs incurred) (To record sales) Debit Credit

Martinez Factory provides a 2-year warranty with one of its products which was first sold in 2025. Martinez sold $909,800 of products subject to the warranty. Martinez expects $124,480 of warranty costs over the next 2 years. In that year, Martinez spent $73,090 servicing warranty claims. Prepare Martinez's journal entry to record the sales (ignore cost of goods sold) and the December 31 adjusting entry, assuming the expenditures are inventory costs. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. List all debit entries before credit entries.) Date During 2025 12/31/25 Account Titles and Explanation (To record payment for warranty costs incurred) (To record sales) Debit Credit

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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