Homework Help is Here – Start Your Trial Now!
Business
Accounting
Pink Pty Ltd. sold $110,000 of cosmetic products during July under a three-month warranty. The cost to repair defects under the warranty is estimated at 2.5% of the sales price. On August 10, a customer required a $100 part replacement plus $40 of labour under the warranty. Journal entry to record estimated warranty expenses will be: Select one: a. Provision for product warranty Dr 2,750   Warranty Expenses Cr 2,750 b. Warranty Expenses Dr 140   Provision for product warranty Cr 140 c. Warranty Expenses Dr 2,750   Provision for product warranty Cr 2,750 d. Provision for product warranty Dr 140   Warranty Expenses Cr 140

Pink Pty Ltd. sold $110,000 of cosmetic products during July under a three-month warranty. The cost to repair defects under the warranty is estimated at 2.5% of the sales price. On August 10, a customer required a $100 part replacement plus $40 of labour under the warranty. Journal entry to record estimated warranty expenses will be: Select one: a. Provision for product warranty Dr 2,750   Warranty Expenses Cr 2,750 b. Warranty Expenses Dr 140   Provision for product warranty Cr 140 c. Warranty Expenses Dr 2,750   Provision for product warranty Cr 2,750 d. Provision for product warranty Dr 140   Warranty Expenses Cr 140

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Pink Pty Ltd. sold $110,000 of cosmetic products during July under a three-month warranty. The cost to repair defects under the warranty is estimated at 2.5% of the sales price. On August 10, a customer required a $100 part replacement plus $40 of labour under the warranty. Journal entry to record estimated warranty expenses will be:
Select one:
a. Provision for product warranty Dr 2,750 
 Warranty Expenses Cr 2,750
b. Warranty Expenses Dr 140 
 Provision for product warranty Cr 140
c. Warranty Expenses Dr 2,750 
 Provision for product warranty Cr 2,750
d. Provision for product warranty Dr 140 
 Warranty Expenses Cr 140
 
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS