Sheridan Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Sheridan estimates that 4% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $15. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month November December (a) Units Sold 31,200 33,200 Units Defective Prior to December 31 624 415 Prepare the journal entry to record the costs incurred in honoring 1,039 warranty claims. (Assume actual costs of $15,585.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Sheridan Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Sheridan estimates that 4% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $15. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month November December (a) Units Sold 31,200 33,200 Units Defective Prior to December 31 624 415 Prepare the journal entry to record the costs incurred in honoring 1,039 warranty claims. (Assume actual costs of $15,585.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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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Subject: accounting
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B7).
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