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S 9-13 (Algo) Recording warranty repairs LO P4 on December 1, Home Store sells a mower (that costs $190) for $490 cash with a one-year warranty that covers parts. Warranty expense is estimated at 10% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $34 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. (Round your answers to 2 decimal places.) View transaction list

S 9-13 (Algo) Recording warranty repairs LO P4 on December 1, Home Store sells a mower (that costs $190) for $490 cash with a one-year warranty that covers parts. Warranty expense is estimated at 10% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $34 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. (Round your answers to 2 decimal places.) View transaction list

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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Complete journal entries 1-4 please and thank you!

**Title: Recording Warranty Repairs - Case Study** On December 1, Home Store sells a mower, which costs $190, for $490 cash. This transaction includes a one-year warranty covering parts. The estimated warranty expense is calculated at 10% of sales. On January 24 of the following year, the mower is returned for repairs covered under the warranty, requiring $34 in materials from the Parts Inventory. **Objective:** 1. Prepare the journal entry on December 1 to record the mower sale and its cost. 2. Prepare the December 31 adjusting entry to account for the estimated warranty liability. 3. Prepare the January 24 entry to record the warranty repairs. **Instructions:** - Round all answers to two decimal places. **Journal Entry Worksheet Overview:** The worksheet provided organizes journal entries with columns for date, general journal description, debit, and credit values. - **Transaction 1: Record the Mower Sales** - Date: December 01 - Note: Enter debits before credits. The worksheet provides a structured space to input each accounting entry with precision for debits and credits. Ensure accurate and complete accounting records reflecting these transactions to understand the impact on financial statements effectively.
Transcribed Image Text:**Title: Recording Warranty Repairs - Case Study** On December 1, Home Store sells a mower, which costs $190, for $490 cash. This transaction includes a one-year warranty covering parts. The estimated warranty expense is calculated at 10% of sales. On January 24 of the following year, the mower is returned for repairs covered under the warranty, requiring $34 in materials from the Parts Inventory. **Objective:** 1. Prepare the journal entry on December 1 to record the mower sale and its cost. 2. Prepare the December 31 adjusting entry to account for the estimated warranty liability. 3. Prepare the January 24 entry to record the warranty repairs. **Instructions:** - Round all answers to two decimal places. **Journal Entry Worksheet Overview:** The worksheet provided organizes journal entries with columns for date, general journal description, debit, and credit values. - **Transaction 1: Record the Mower Sales** - Date: December 01 - Note: Enter debits before credits. The worksheet provides a structured space to input each accounting entry with precision for debits and credits. Ensure accurate and complete accounting records reflecting these transactions to understand the impact on financial statements effectively.
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