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Question
Estimated Warranty Liability
Yummy Co. sold $788,000 of equipment during January under a six-month warranty.
The cost to repair defects under the warranty is estimated at 4% of the sales price. On August 15, a customer required a $217 part replacement, plus $242 of labor under the warranty.
Required:
(a) Provide the journal entry for the estimated warranty expense on January 31 for January sales.
(b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank.
Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.
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