Ask Question
4 May, 07:02

Ecco Company sold $151,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 9% of the sales price. On October 15, a customer required a $120 part replacement, plus $87 labor under the warranty.

Provide the journal entry (a) the estimated expense on September 30 and (b) the October 15 warranty work.

+4
Answers (1)
  1. 4 May, 07:17
    0
    The journal entries are shown below

    Explanation:

    The journal entries are as follows

    a. Product warranty expense $13,590 ($151,000 * 9%)

    To Product warranty payable $13,590

    (Being the warranty estimated expense is recorded)

    b. Product warranty payable $207

    To Supplies $120

    To Wages payable $87

    (Being the warranty work is recorded)

    Only these two entries are passed
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ecco Company sold $151,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers