On October Benson Company sells microwaves at an average price of $ The product includes a oneyear warranty on parts. Based on past experience, it is expected that will be defective, and that warranty repair costs will average $per unit. In warranty contracts were honored on units at a total cost of $ Which of the following is the correct summary journal entry to record for the repairs?
Responses
Warranty Expense Debit
Repair Parts Inventory andor Wages PayableCredit
Warranty Expense Debit Repair Parts Inventory andor Wages PayableCredit
Warranty Expense Debit
Warranty Liability Credit
Warranty Expense Debit Warranty Liability Credit
Warranty Liability Debit
Repair Parts Inventory andor Wages PayableCredit
Warranty Liability Debit Repair Parts Inventory andor Wages PayableCredit
Warranty Liability Debit
Cash Credit
Warranty Liability Debit Cash Credit
