Question

s e that the Hosted in Color Spring mas ing 700 000 din Historantes nomes for three years Company experience indicates that 2018. The company received cash for these wo o rher collap Way Read the first the credits Select the explanation on the land of the entry ) Requirement. Record the Begin with the entry to record the way Prepare a single compound the company by for the a ction Accounts and plante 1. Record s and pay for the company 2. Assume the Estimated Warranty Payabis Son January 1, 2018 Post the 2018 in the Way Payable account the end Record the way Accounts and Explanation Det er Print Done h a rian nincs and then continue ontston

Answer 1

1)

Date	Account titles and explanation	Debit	Credit
2018	Cash (700000*40%)	$280000
	Notes receivable (700000-280000)	$420000
	Sales		$700000
	(To record sales)
2018	Warranty expense (700000*7%)	$49000
	Estimated warranty payable		$49000
	(To record warranty payable)
2018	Estimated warranty payable	$32000
	Cash		$32000
	(To record warranty payment)

2)

Estimated Warranty Payable
Paid	32000	$0	Beg. Bal.
		49000	Accrued
		$17000	End. Bal.