A Company Sells Its Product Subject to a Warranty That

question 18

Essay

A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale.Warranty costs are estimated to be 5% of sales.During the month of July,the company performed warranty work and used $11,000 of parts to perform the warranty work.Sales for July were $450,000.
1.Record the warranty expense for the month of July.
2.Record the costs of the warranty work completed in June.
3.If the Estimated Warranty Liability account had a credit balance of $10,000 on May 31,what is the account balance at June 30?

---

Definitions:

Sexist Bias

Prejudiced beliefs or attitudes based on gender, typically manifesting as discrimination against one sex in favor of another.

Sexual Harassment

Unwanted or inappropriate sexual remarks or physical advances, typically in a workplace or other professional or social situation.

Math-enriched Experiences

Activities or exposures designed to enhance one's understanding, appreciation, and skills in mathematics, typically outside of traditional classroom settings.

Confounding

In research and statistics, describes a situation where the effect of the independent variable on the dependent variable is mixed with the effect of another variable, complicating the analysis and interpretation of results.