Metro Sales Company Offers Warranties on All Its Electronic Goods

question 196

Essay

Metro Sales Company 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:

Umami

One of the five basic tastes, often described as savory or meaty, associated with flavors of broth, cheese, and soy sauce.

Taste Receptors

Specialized sensory cells located on the tongue and in the mouth that are responsible for detecting and interpreting tastes.

Sclera

The white, opaque, fibrous outer layer of the eyeball; it provides protection and form.

Cornea

Transparent, anterior portion of the outer layer of the eyeball.