Bach Co Presents the Following Information for 2018 and 2019

question 34

Essay

Bach. Co. presents the following information for 2018 and 2019.

2018 information:
Sales on account in the amount of $645,000
Warranty expense and associated liability in the amount of $125,000
No other expenses incurred.

2019 information:
Sales on account in the amount of $225,000
Warranty payments made in the amount of $65,000
No expenses incurred.

Prepare the journal entries for 2018 and 2019 to record the sales, warranty, and income tax transactions, assume a 40% tax rate.

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Definitions:

Rh-negative

Refers to the absence of the Rh (Rhesus) factor on the surface of red blood cells.

Coagulation

The process of blood turning from a liquid to a gel, forming a clot, which is crucial in preventing excessive bleeding when the vascular system is injured.

Platelets

Small blood cells essential for blood clotting and preventing bleeding.

Agglutination

The clumping together of cells or particles, commonly observed in blood cells in response to certain antibodies, which can be a basis for blood typing.