Chapter 11, Problem 9QS

To determine

Warranty:

The obligation of seller to repair or replace a product in case it fails to perform as expected within specified period is called a warranty. The expected warranty expense is recorded at the time recognizing the sale of the product by showing a liability (Warranty Liability) even though it is uncertain.

To journalize:

Journalize the sale of mower (and cost of sale) on September 1 and warranty repairs as on January 24.