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Question - Lamar Industries warrants its products for one year. The estimated product warranty expense is 3% of sales. Sales for June were $190,000. In July, a customer received warranty repairs requiring $185 of parts and $50 of labor.
Required -
a. Journalize the adjusting entry required at June 30, the end of the first month of the current year, to record the estimated product warranty expense. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to record the warranty work provided in July. If an amount box does not require an entry, leave it blank.
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