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At the beginning of 2016, Wilco Mechanics Ltd had a credit balance of $40 000...

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Accounting

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At the beginning of 2016, Wilco Mechanics Ltd had a credit balance of $40 000 in its Warranty Provision account. The warranty expense for the year was $280 000 and the balance of the Warranty Provision account at the end of the year after adjusting entries was $240 000. Required: [2 marks] 2. Prepare journal entries to record the warranty claims during the period. Assume that all warranty costs were for the replacement of parts using goods from its own inventory [2 marks] 3. Prepare journal entries to record the end-of-period adjustments to the Warranty 2 marks] 1. Calculate the cost of warranty claims during the period. Provision account

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