Accounting for Warranty expense and Warranty expense liability: Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends. Requirement1: TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

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Answer 1

Question

Chapter 11, Problem S11.11SE

To determine

Accounting for Warranty expense and Warranty expense liability:

Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends.

Requirement1:

TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

To determine

Requirement2:

The T-account of Estimated Warranty payable.

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Answer 2

Question

Chapter 11, Problem S11.11SE

To determine

Accounting for Warranty expense and Warranty expense liability:

Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends.

Requirement1:

TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

To determine

Requirement2:

The T-account of Estimated Warranty payable.

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Answer 3

Question

Chapter 11, Problem S11.11SE

To determine

Accounting for Warranty expense and Warranty expense liability:

Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends.

Requirement1:

TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

To determine

Requirement2:

The T-account of Estimated Warranty payable.

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Answer 4

Question

Chapter 11, Problem S11.11SE

To determine

Accounting for Warranty expense and Warranty expense liability:

Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends.

Requirement1:

TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

To determine

Requirement2:

The T-account of Estimated Warranty payable.

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Answer 5

Chapter 11, Problem S11.11SE

To determine

Accounting for Warranty expense and Warranty expense liability:

Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends.

Requirement1:

TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

To determine

Requirement2:

The T-account of Estimated Warranty payable.

Answer 6

Chapter 11, Problem S11.11SE

To determine

Accounting for Warranty expense and Warranty expense liability:

Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends.

Requirement1:

TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

Answer 7

Chapter 11, Problem S11.11SE

To determine

Accounting for Warranty expense and Warranty expense liability:

Sometimes the business man offer the warranty agreement to its customer for some agreed period of time. In such instances, the business estimates the warranty cost as a percentage of sale based on past performance and such warranty cost shall be treated as expense for the period in which sales revenue related to such warranty has been recorded. Though the warranty may be pending or accrue for later years, which will be shown as liability till the warranty period ends.

Requirement1:

TheJournal entries for recording the sales, warranty expense accrual and payment of warranty expense.

Answer 8

To determine

Requirement2:

The T-account of Estimated Warranty payable.

Answer 9

To determine

Requirement2:

The T-account of Estimated Warranty payable.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Prob. 1QC Ch. 11 - On January 1, 2018, a business borrowed $18,000 on...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Prob. 8QC Ch. 11 - Prob. 9QC Ch. 11 - McDaniel and Associates reported the following...

Requirement2: The T-account of Estimated Warranty payable.

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Requirement2:

The T-account of Estimated Warranty payable.