Top Posters
Since Sunday
25
13
11
9
5
l
4
4
w
3
M
3
M
3
p
3
R
3
New Topic  
gOOvER gOOvER
wrote...
Posts: 1305
Rep: 0 0
4 years ago
Franconia Sales offers warranties on all their electronic goods.  Warranty expense is estimated at 2% of sales revenue.  In 2013, Franconia had $500,000 of sales.  In the same year, Franconia paid out $7,500 of warranty payments.  Which of the following is the entry needed to record the estimated warranty expense?
A)
Estimated warranty payable   7,500   
       Cash      7,500

B)
Warranty expense   7,500   
       Estimated warranty payable      7,500

C)
Warranty expense   10,000   
       Estimated warranty payable      10,000

D)
Warranty expense   10,000   
       Sales revenue      10,000
Textbook 

Accounting, Volume 1, Canadian Edition


Edition: 9th
Authors:
Read 115 times
2 Replies
Replies
Answer verified by a subject expert
KryzenKryzen
wrote...
Posts: 466
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More questions for this book are available here
C
1

Related Topics

wrote...
A month ago
Thank you so much
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  288 People Browsing
 556 Signed Up Today
Your Opinion
Do you believe in global warming?
Votes: 308

Related Images
 713
 186
 141