During December, Vixen Company sells $857,000 in merchandise that has a one-year warranty. Warranty expense is estimated at 4% of sales. On January 5 of the following year, the merchandise requires repairs that are completed the same day. The repairs cost $14,700 for materials taken from parts inventory. The entry to record the repairs that occur on January 5 is:

Question

Answer

Debit Warranty Expense $19,580; credit Estimated Warranty Liability $19,580.

Answer

Debit Estimated Warranty Liability $34,280; credit Warranty Expense $34,280.

Answer

Debit Warranty Expense $14,700; credit Estimated Warranty Liability $14,700.

Answer

Debit Estimated Warranty Liability $19,580; credit Parts Inventory $19,580.

Answer

Debit Estimated Warranty Liability $14,700; credit Parts Inventory $14,700.

Crowdly

During December, Vixen Company sells $857,000 in merchandise that has a one-year...

Want instant access to all verified answers on moodle.immaculata.edu?