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At the beginning of 2020, ZYX Corporation began offering a two-year warranty on its products....

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Accounting

At the beginning of 2020, ZYX Corporation began offering a two-year warranty on its products. The warranty program was expected to cost ZYX 4% of net sales. At the beginning of 2021 the balance in the Warranty Liability account was a credit of $5.8 million.
Net sales made under warranty in 2021 were $250 million. The actual cost of repairs or replacements for 2021 was $6.3 million.
A. Record the summary journal entry for the actual warranty claims for 2021.
B. Record the summary journal entry for the accrual of warranty expense for 2021.
C. What is the final balance of the Warranty Liability at the end of 2021.
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