Quantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the warranty.Provide the journal entry for (a) the estimated warranty expense on July 31 for July sales and (b) the November 11 cash payment.

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A: Solution:  estimated warranty cost = Units sold * 5% *90 = 1400*5%*90  = $6,300

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A: Estimated liability = Sales x warranty obligations % = $1,450,000 x 3% = $43,500

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A:

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A: Note: We’ll answer the first two questions since the exact one wasn’t specified. Please submit a new…

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