Record the journal entries: Craig Design and Landscaping offers 1 year assurance-type warranties on each tree sold over $250. Craig also sells a 3-year service-type warranty for each tree sold over $250. Craig sold $3,000 worth of service-type warranties and received cash during the 3rd quarter of this year. These warranties are effective after the one year assurance-type warranty expires. Record the journal entry for this warranty transaction in the QB Online test drive company. You and Craig estimate that 5% of customers will require assurance- type warranty replacement. Sales for trees over $250 for the quarter are $22,500. Record the journal entry for this warranty accrual in the QB Online test drive company. Craig’s Design has incurred costs of $1,000 this quarter related to the warranties. $400 for replacement of trees (use supplies account) and $600 for labor costs. The labor costs are unpaid. Record the journal entry for the actual expenses incurred this quarter
Record the journal entries:
Craig Design and Landscaping offers 1 year assurance-type warranties on each tree sold over $250. Craig also sells a 3-year service-type warranty for each tree sold over $250.
Craig sold $3,000 worth of service-type warranties and received cash during the 3rd quarter of this year. These warranties are effective after the one year assurance-type warranty expires. Record the
You and Craig estimate that 5% of customers will require assurance- type warranty replacement. Sales for trees over $250 for the quarter are $22,500. Record the journal entry for this warranty accrual in the QB Online test drive company.
Craig’s Design has incurred costs of $1,000 this quarter related to the warranties. $400 for replacement of trees (use supplies account) and $600 for labor costs. The labor costs are unpaid. Record the journal entry for the actual expenses incurred this quarter.
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