Essay
Hadley Industries warrants its products for one year. The estimated product warranty expense is 4% of sales. Assume that sales were $210,000 for June. In July, a customer received warranty repairs requiring $205 of parts and $75 of labor.
(a)Journalize the adjusting entry required at June 30, the end of the first month of the current year, to record the estimated product warranty expense.
(b)Journalize the entry to record the warranty work provided in July.
Correct Answer:
Verified
Correct Answer:
Verified
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