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On December 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Warranty expense is estimated at 7% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Parts Inventory. Prepare the December 1 entry to record the mower sale (and cost of sale), the December 31 adjusting entry for estimated warranty liability, and the January 24 entry to record the warranty repairs. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet 1 2 3 Record the mower sales. 4

On December 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Warranty expense is estimated at 7% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Parts Inventory. Prepare the December 1 entry to record the mower sale (and cost of sale), the December 31 adjusting entry for estimated warranty liability, and the January 24 entry to record the warranty repairs. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet 1 2 3 Record the mower sales. 4

FINANCIAL ACCOUNTING
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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On December 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Warranty expense is estimated at 7% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Parts Inventory. Prepare the December 1 entry to record the mower sale (and cost of sale), the December 31 adjusting entry for estimated warranty liability, and the January 24 entry to record the warranty repairs. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet 1 2 3 Record the mower sales. Date December 01 Note: Enter debits before credits. 4 General Journal Debit Credit
Transcribed Image Text:On December 1, Home Store sells a mower (that costs $250) for $550 cash with a one-year warranty that covers parts. Warranty expense is estimated at 7% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Parts Inventory. Prepare the December 1 entry to record the mower sale (and cost of sale), the December 31 adjusting entry for estimated warranty liability, and the January 24 entry to record the warranty repairs. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet 1 2 3 Record the mower sales. Date December 01 Note: Enter debits before credits. 4 General Journal Debit Credit
< 1 Date December 01 Record the cost of mower sales. Note: Enter debits before credits. Show Transcribed Text < 2 Journal entry worksheet 1 2 3 Date December 31 3 Note: Enter debits before credits. Show Transcribed Text < Record the estimated warranty expense. 1 4 2 Date January 24 Journal entry worksheet General Journal 3 4 Note: Enter debits before credits. General Journal Record the cost of warranty repairs. 3 4 General Journal C Debit Debit Debit Credit Credit Credit
Transcribed Image Text:< 1 Date December 01 Record the cost of mower sales. Note: Enter debits before credits. Show Transcribed Text < 2 Journal entry worksheet 1 2 3 Date December 31 3 Note: Enter debits before credits. Show Transcribed Text < Record the estimated warranty expense. 1 4 2 Date January 24 Journal entry worksheet General Journal 3 4 Note: Enter debits before credits. General Journal Record the cost of warranty repairs. 3 4 General Journal C Debit Debit Debit Credit Credit Credit
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