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Nash Industries Changed Its Method of Accounting for Warranties from the Cash

question 77

Essay

Nash Industries changed its method of accounting for warranties from the cash basis to the accrual basis on January 1, 2018. The company's accountant determined that a liability of $70,000 should be established. Ignore income taxes.
Required:
Prepare the journal entry to record the accounting change.


Definitions:

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Increasing Mobility

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Likert Scale

A measurement scale with multiple answer options that measures respondents' attitudes or opinions.

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