Nelson Industries Warrants Its Products for One Year

question 81

Essay

Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were $475,000 for September. In October, a customer received warranty repairs requiring $215 of parts and $65 of labor.​
(a)Journalize the adjusting entry required at September 30, the end of the first month of the current year, to record the estimated product warranty expense.
(b)Journalize the entry to record the warranty work provided in October.​​

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Definitions:

Unique Assimilation

The process of integrating new information into existing cognitive schemas in a way that is special to the individual.

Association Areas

Regions of the brain that integrate and process information from the sensory and motor areas to perform complex cognitive tasks.

Motor Areas

Regions of the brain involved in the planning, control, and execution of voluntary movements, predominantly located in the frontal lobes.

Higher-Order Processes

Cognitive operations that involve complex thinking, such as reasoning, decision making, problem solving, and planning.