Journal entry A- Record the mower sales B- Record the estimated warranty expense

Question

Journal entry

A- Record the mower sales

B- Record the estimated warranty expense

C- Record the cost of Warranty repairs

B

QS 11-9 Recording warranty repairs LO P4 On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts. Warranty expense is estimated at 10% of sales. On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory. Prepare the September 11, 2016, entry to record the mower sale, and the July 24, 2017, entry to record the warranty repairs. (Round your answers to 2 decimal places.)

Explanation / Answer

Journal entries: Date Accounts title and explanations Debit Credit 11-Sep Accounts receivable Account Dr. 490       Sales revenue 490 11-Sep Warranty expense Account Dr. (490*10%) 49      Warranty expense Payable 49 24-Jul Warranty Expense payable Account Dr. 34       Inventory Account 34

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