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The accounting records of Carmine's Appliances included the following balances at the end of the period: Accrued Warranty Payable Sales Revenue Warranty Expense Beg bal 2,000 104,000 In the past, Carmine's warranty expense has been 4% of sales. During the current period, the business paid $4,000 to satisfy the warranty claims. Read the requirements SIDE Requirement 1. Journalize Carmine's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required. Start by journalizing the warranty expense. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Date Debit Credit Now joumalize the warranty payments Credit Date Journal Entry Accounts Debit Time Remainin y the current period, the business paid $4,000 to satisfy the warranty claims. Requirements he period est, then cr 1. Journalize Carmine's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required. 2. Show what Carmine's will report on its income statement and balance sheet for this situation at the end of the period. De 3. Which data item from requirement 2 will affect the current ratio? Will Carmine's current ratio increase or decrease due to this item? Print Done Credit Debit - X Accrued Warranty Payable Warranty Expense Sales Revenue 104,000 Beg bal 2,000 In the past, Carmine's warranty expense has been 4% of sales. During the current period, the business paid $4,000 to satisfy the warranty claims. Read the requirements Requirement 1. Journalize Carmine's warranty expense for the period and the company's cash payments to satisfy warranty claims. Explanations are not required. Start by journalizing the warranty expense. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit Now journalize the warranty payments. Date Debit Credit Journal Entry Accounts Requirement 2. Show what Carmine's will report on its income statement and balance sheet for this situation at the end of the period. (If an input field is not used in the statement, leave the field empty; do not select a label or enter a zero) Begin by showing what the company would report on its income statement at the end of the period Income Statement Now show what the company would report on its balance sheet at the end of the period Balance Sheet Requirement 3. Which data tem from requirement 2 will affect the cument nato? Wil Carmine's current ratio increase or decreased to this? Which data from Requirement 2 wit affect Carmin's cuentrato? Time Remag 014724 counting records of Carmine's Appliances included the following balances at the E Sales Revenue Warranty Expen crued Warranty Payable 104,000 Beg bal 2,000 past, Carmine's warranty expense has been 4% of sales. During the current period, the requirements. Journal Entry Debit Credit Accounts Payable w journalize t Accrued Warranty Payable Cash te J Debit Credit Sales Revenue Sales Tax Payable Warranty Expense equirement 2. Show what Carmine's will report on its income statement and balance sheet for th egin by showing what the company would report on its income statement at the end of the period. Income Statement Accounts Begin by showing what the company would report on its inc Income Statement Accrued warranty payable rt on its balance shee Sales revenue Warranty expense Now show what the company would report on its balance shee Balance Sheet Accrued warranty payable quirement 2 will affect th Current assets: affect Carmine's current Current liabilities: ecrease as a result of an i Sales revenue Warranty expense .. = statement and balance sheet for this situation at the end of the p e statement at the end of the period. meet at the end of the period. affect the curre crease or decrease due 's current ratio? result of an increase in this item? Accrued warranty payable Sales revenue Warranty expense ent at the end of the period. end of the period. current ratio? Will Ca tio? ncrease in this item? Increase Decrease per crease or decrease due

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