Journal entries required to create and close the warranty

Assignment Help Financial Accounting

Reference no: EM134296

Question

Spoiled Baby Corp (SPC) sells baby buggies recent changes in the law required SPC to warranty its products for 90 days and you obligation set up the required accounts. Historical Data indicates that 6% of monthly sales consequence in warranty claims. The June 20x1 monthly sales are $481,000

The subsequent warranty claims were made against June sales

July 8 210      July 14 450
July 16 900    July 21 385
July 26 421    July 28 772
Aug 4 1,795   Aug 8 921
Aug 14 267    Aug 17 1,022
Aug 25 186     Aug 27 755
Aug 29 548    Aug 30 899
Sept 2 111     Sept 3 219
Sept 5 1,135 Sept 14 816
Sept 18 242   Sept 24 987
Sept 27 147   Sept 28 1,587
Sept 29 788   Sept 30 489
Oct 1 1188     Oct 8 1387
Oct 14 489     Oct 17 577
Oct 21 1,967 Oct 27 927
Oct 28 683    Oct 29 492
Oct 30 897    Oct 31 1572

Make the Journal entries required to create and close the warranty period

Reference no: EM134296

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