Superior Sales Company Offers Warranties on All Its Electronic Goods

question 100

Essay

Superior Sales Company offers warranties on all its electronic goods.Warranty expense is estimated at 3.5% of sales revenue.In 2018,Superior had sales of $333,000.In the same year,Superior replaced defective goods with merchandise inventory costing $8,750.Prepare the journal entry to record the warranty expense.Omit explanation.

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Definitions:

Action Decisions

Decisions that lead to specific actions aimed at achieving objectives or solving problems within an organization or project.