Masterpiece Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 5% of sales revenue. In 2025, the company had $601,000 in sales. In the same year, Masterpiece Sales replaced defective goods with goods that had a cost of $9,500. Which of the following is the entry needed to record the replacement of the defective goods? O Warranty Expense 30,050 OOO Merchandise Inventory O Warranty Expense Estimated Warranty Payable O Estimated Warranty Payable Merchandise Inventory O Warranty Expense Estimated Warranty Payable 9,500 9,500 30,050 30,050 9,500 9,500 30,050

Masterpiece Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 5% of sales revenue. In 2025, the company had $601,000 in sales. In the same year, Masterpiece Sales replaced defective goods with goods that had a cost of $9,500. Which of the following is the entry needed to record the replacement of the defective goods? O Warranty Expense 30,050 OOO Merchandise Inventory O Warranty Expense Estimated Warranty Payable O Estimated Warranty Payable Merchandise Inventory O Warranty Expense Estimated Warranty Payable 9,500 9,500 30,050 30,050 9,500 9,500 30,050

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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