on December 1, Concord Company introduces a new product that includes a one-year warranty on parts. In December, 1,300 uni re sold. Management believes that 6% of the units will be defective and that the average warranty costs will be $90 per unit.
on December 1, Concord Company introduces a new product that includes a one-year warranty on parts. In December, 1,300 uni re sold. Management believes that 6% of the units will be defective and that the average warranty costs will be $90 per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On December 1, Concord Company introduces a new product that includes a one-year warranty on parts. In December, 1,300 units
are sold. Management believes that 6% of the units will be defective and that the average warranty costs will be $90 per unit.
Prepare the adjusting entry at December 31 to accrue the estimated warranty cost, assuming no warranty claims have been honored
to date. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Dec. 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ca74985-e409-4b01-9248-7509579e3ce7%2Fc76f653d-06a7-4974-bc06-3ba2fdbb02f7%2F99ubrzq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 1, Concord Company introduces a new product that includes a one-year warranty on parts. In December, 1,300 units
are sold. Management believes that 6% of the units will be defective and that the average warranty costs will be $90 per unit.
Prepare the adjusting entry at December 31 to accrue the estimated warranty cost, assuming no warranty claims have been honored
to date. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Dec. 31
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