Nov. 1 Made sales of $52,000. McNight estimates that warranty expense is 6% of sales. (Record only the warranty expense.) 20 Paid $1,600 to satisfy warranty claims. Dec. 31 Estimated vacation benefits expense to be $6,000. 31 McNight expected to pay its employees a 3% bonus on net income after deducting the bonus. Net income for the year is $52,000.

Nov. 1 Made sales of $52,000. McNight estimates that warranty expense is 6% of sales. (Record only the warranty expense.) 20 Paid $1,600 to satisfy warranty claims. Dec. 31 Estimated vacation benefits expense to be $6,000. 31 McNight expected to pay its employees a 3% bonus on net income after deducting the bonus. Net income for the year is $52,000.

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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