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Home Q & A Board Other Fields Homework Help Business Accounting
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H3Ko H3Ko
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8 years ago
Lawrence Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2017, the company had $603,000 in sales. In the same year, Lawrence Sales replaced defective goods with a cost of $16,500. Which of the following is the entry needed to record the replacement of the defective goods?

A) Warranty Expense   18,090   
     Merchandise Inventory      18,090

B) Warranty Expense   16,500   
     Estimated Warranty Payable      16,500

C) Warranty Expense   18,090   
     Estimated Warranty Payable      18,090

D) Estimated Warranty Payable   16,500   
     Merchandise Inventory      16,500
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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.unplugged..unplugged.
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8 years ago
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H3Ko Author
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#2
8 years ago
I posted this question a while back then forgot to check the forum lol Thanks for answering, you were right
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#3
4 years ago
thanks
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#4
4 years ago
sweet
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