RMilton Products Inc

question 31

Essay

R.Milton Products Inc.generated sales for the current month of 200 units at $225 each,subject to sales tax of 7.5%.All sales are on account.Each unit carries a 6-month warranty.R.Milton Products Inc.promises to repair the unit should it become defective.The estimated cost to the company to honour the warranty is $60 and past experience has shown that approximately 7% of all units will have to be repaired during the warranty period.
Prepare journal entries for the following transactions:
a.Record sales for the current month including the taxes collected in the revenue account.
b.Record the estimated warranty liability associated with the current month's sales.
c.Adjust the revenue account for the proper amount of sales tax payable.

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Definitions:

Trauma Counseling

Specialized therapy focusing on helping individuals recover and heal from traumatic events and experiences.

Second-Level Crisis Intervention

Second-level crisis intervention encompasses strategies and services provided after the immediate response to a crisis, aiming to address underlying issues and support recovery and prevention of future crises.

Self-Care Strategies

Techniques and habits that individuals adopt to maintain and improve their mental and physical health.

Stress Factors

Elements or conditions in an individual's life or environment that cause stress.