Felix Sales,Inc

question 149

Essay

Felix Sales,Inc.offers warranties on all its electronic goods.Warranty expense is estimated at 3.5% of sales revenue.In 2017,Felix had sales of $333,000.In the same year,Felix replaced defective goods with merchandise inventory costing $8,750.Prepare the journal entry to record the warranty expense.

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Definitions:

Premium Price

A pricing strategy where goods or services are sold at a higher price point due to perceived advantages, often related to quality or status.

Bond Quoted

The price or interest rate at which a bond is currently being sold or bought in the market.

Dollar Amount

A numerical monetary value denoted in the currency of the United States.

Interest Earned

The total amount of interest received by a person or entity on investments over a specific period of time.