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Estimated Warranty Liability Savory sold $558,000 of consumer electronics during July under a two-year warranty....

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Accounting

Estimated Warranty Liability

Savory sold $558,000 of consumer electronics during July under a two-year warranty. The cost to repair defects under the warranty is estimated at 5.5% of the sales price. On November 10, a customer was given $212 cash under terms of the warranty.

(a) Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank.

July 31

Accounts PayableCashProduct Warranty ExpenseProduct Warranty PayableSupplies

 - Select - - Select -

Accounts PayableCashProduct Warranty ExpenseProduct Warranty PayableWages Payable

 - Select - - Select -

(b) Provide the journal entry for the November 10 cash payment. If an amount box does not require an entry, leave it blank.

Nov. 10

CashProduct Warranty ExpenseProduct Warranty PayableSuppliesWages Expense

 - Select - - Select -

CashProduct Warranty ExpenseProduct Warranty PayableSuppliesWages Expense

 - Select - - Select -

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