Question

Time Remaining 2 hours 2 minutes 4 seconds

02:02:04

Item 11

Item 11

Time Remaining 2 hours 2 minutes 4 seconds

02:02:04

Esplanade Outdoor Co. estimates that warranty expense will be 5% of sales. The current period's sales were $1,740,000. The entry to record the warranty expense is

Answer 1

Answer:

Warranty Expenses = 5% of sales

Sales= $1,740,000

Warranty Expenses = 5%of $1,740,000

=$87,000

Date	Account Details and Explanation	Debit ($)	Credit ($)
	Warranty Expenses	87,000
	Warranty Liabilities		87,000
	To record warranty expense,5% of sales
	Warranty Liabilities	87,000
	Inventory		87,000
	To record warranty claim recognise

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