Question

Journalize the following transaction

Dec.31 The accrued product warranty for the year is estimated to be 1.5% of the net sales. Sales for the year totaled $8,000,000 and sale returns and allowance were $240,000

Dec.31 The accrued vacation for the year is estimated to be $46,000.

Dec.31 Reliable insurance co. $85,000 as fund trustee for the pension plan . The annual pension cost is $109,000.

Answer 1

Date	Account titles and explanation	Debit	Credit
Dec. 31	Product Warranty Expense($7,760,000 * 0.015)	$116,400
	Product Warranty Payable		$116,400
Dec. 31	Vacation Pay Expense	$46,000
	Vacation Pay Payable		$46,000
Dec. 31	Pension Expense	$109,000
	Cash		$85,000
	Unfunded Pension Liability		$24,000