McBride Industries Completed the Following Transactions During 2018 Journalize the Transactions (Explanations Are Not Required)

question 190

Essay

McBride Industries completed the following transactions during 2018:
$$\begin{array} { | l | l | } \hline & \text { Made sales of } \$ 10,000 . \text { McBride estimates that warranty expense is } \\\text { Oct. 1 }&\text { 5\% of sales. (Record only the warranty expense.) }\\\hline \text { Oct. 24 } & \text { Paid } \$ 250 \text { to satisfy warranty claims. } \\\hline \text { Dec. } 31 & \text { Estimated vacation benefits expense to be } \$ 2,350 . \\\hline & \text { McBride expected to pay its employees a } 4 \% \text { bonus on net income } \\\text { Dec. } 31 & \text { after deducting the bonus. Net income for the year is } \$ 25,000 . \\\hline\end{array}$$ Journalize the transactions (explanations are not required).Round to the nearest dollar.

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Definitions:

Income Statement Approach

A method to prepare the bad debt expense by estimating uncollectible accounts at the end of each period based on expected losses.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services delivered on credit.

Uncollectible Percentage

The estimated portion of accounts receivable that a company does not expect to collect.

Uncollectible Accounts

Accounts receivable that are considered to be uncollectible and represent losses to the company, often written off as bad debt.