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Accrued Product Warranty Logan Manufacturing Co. warrants its products for one year. The estimated product...

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Accounting

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Accrued Product Warranty Logan Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $437,000 for January. In February, a customer received warranty repairs requiring $325 of parts and $85 of labor. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. Product Warranty Expense Product Warranty Payable Feedback Check My Work The accrued product warranty amount is recorded in the same period in which the sale is recorded, therefore following the matching concept. b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank. Product Warranty Payable Supplies 325 Wages Payable 85 Feedback Check My Work

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