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EE must borrow $250,000 from bank for facility additions. EE offers a warranty on its parts of 90 days. You must make certain that the proper accounts are created and maintained.
EE sells computer parts. The company is required to warranty its products for 90 days. Historical Data indicates that 4% of monthly sales result in warranty claims. The monthly sales for February were $567,550.
The following warranty claims were made against the February sales. I also attached a screenshot below to provide better formatting.
Prepare the journal entries to create and close the warranty period for the contingent liability due to sales from February. Post claims to the appropriate T-accounts to illustrate the journal entries.
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Homer Corp became public on January 1, 2013 and issued the following stock for cash: 800,000 shares of $1 par value common stock authorized, 150,000 shares issued for $19 per share. 200,000 shares of $100 par value, 9.5% cumulative preferred stock au..
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