Chapter 13, Problem 5P

To determine

Warranty: Warranty can be defined as an assurance document given by a manufacturer to the customer promising to replace the product if damaged within a specified period of time.

(a)

To prepare: To prepare necessary journal entries related to warranty.

To determine

(b)

To classify: To classify the warranty liability.

To determine

(c)

To record: To record the journal entry to record warranty liability.