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Nelson Industries Warrants Its Products for One Year

question 11

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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) Joumalize 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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