A Business Hired a Repairman to Overhaul Their Plumbing System $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

question 70

Essay

A business hired a repairman to overhaul their plumbing system.The repairman began working on September 15 and will finish the work on October 15.The business will pay him $4,000 when the work is completed.As of September 30,the work was 50% complete,and the business made an adjusting entry to accrue repair expense as of the end of September.Please provide that adjusting entry.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

---

Definitions:

Cost of Goods Sold

The exact costs incurred in the creation of a company’s sold goods, including the expenses for materials and labor.

Average Inventory

An estimation of the amount of inventory a company typically holds over a specific period, calculated as the average of the beginning and ending inventory.

Net Income

The company's net income, calculated by deducting all costs, taxes, and losses from its total revenue.

Profit Margin

A financial metric showing the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a company.