Metro Sales, Inc

question 142

Essay

Metro Sales, Inc. offers warranties on all its electronic goods. Warranty expense is estimated at 3.5% of sales revenue. In 2019, Metro had sales of $333,000. In the same year, Metro replaced defective goods with merchandise inventory costing $8,750. Prepare the journal entry to record the replacement of defective goods. Omit explanation.

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Definitions:

Stroke Patient

An individual who has suffered from a stroke, a medical condition where poor blood flow to the brain results in cell death.

Right Hand

Refers to the hand on the right side of the body, often associated with dominance or primary use in most activities for the majority of people.

Frequent Sessions

Regular and often repeated meetings or periods of activity, such as therapy or exercise classes, aimed at achieving a specific goal.

Crutch Walking

The technique of walking with the aid of crutches to support and balance the body while one or both legs are unable to bear weight.