Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. northwest electric had cash sales for the month to

Northwest Electric had cash sales for the month totaling $74,000. Northwest offers a 6-month warranty...

60.1K

Verified Solution

Question

Accounting

image
Northwest Electric had cash sales for the month totaling $74,000. Northwest offers a 6-month warranty on its services. If Northwest estimates warranty claims will equal 4% of sales, what is the journal entry to record the estimated warranty expense for the month? A. Debit Warranty expense, 2,960; credit Sales revenue, $2,960 B. Debit Warranty expense, 2,960; credit Cash, 2,960 OC. Debit Estimated warranty payable, $2,960; credit Warranty expense, $2,960 D. Debit Warranty expense, $2,960, credit Estimated warranty payable, $2,960

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students