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On October 1,2024, Benson Company sells 5,000 microwaves at an average price of $500. The...

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Accounting

On October $1, 2024,$ Benson Company sells $5, 000$ microwaves at an average price of $ $500 .$ The product includes a one $-$ year warranty on parts. Based on past experience, it is expected that $2 %$ will be defective, and that warranty repair costs will average $ $125$ per unit. In $2024,$ warranty contracts were honored on $40$ units at a total cost of $ $5, 000 .$ Which of the following is the correct summary journal entry to record for the repairs?

Responses

Warranty Expense $($ Debit $) 5, 000$

Repair Parts Inventory $($ and $/$ or Wages Payable $) ($ Credit $) 5, 000$

Warranty Expense $($ Debit $) 5, 000$ Repair Parts Inventory $($ and $/$ or Wages Payable $) ($ Credit $) 5, 000$

Warranty Expense $($ Debit $) 5, 000$

Warranty Liability $($ Credit $) 5, 000$

Warranty Expense $($ Debit $) 5, 000$ Warranty Liability $($ Credit $) 5, 000$

Warranty Liability $($ Debit $) 5, 000$

Repair Parts Inventory $($ and $/$ or Wages Payable $) ($ Credit $) 5, 000$

Warranty Liability $($ Debit $) 5, 000$ Repair Parts Inventory $($ and $/$ or Wages Payable $) ($ Credit $) 5, 000$

Warranty Liability $($ Debit $) 5, 000$

Cash $($ Credit $) 5, 000$

Warranty Liability $($ Debit $) 5, 000$ Cash $($ Credit $) 5, 000$

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