Nash Industries Changed Its Method of Accounting for Warranties from the Cash

question 56

Essay

Nash Industries changed its method of accounting for warranties from the cash basis to the accrual basis on January 1, 2009. The company's accountant determined that a liability of $70,000 should be established. Ignore income taxes.
Required:
Prepare the journal entry to record the accounting change.

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Definitions:

Leadership Motivation

The inner drive or desire influencing individuals to pursue and achieve leadership roles and responsibilities to influence others and achieve goals.

Emotional Intelligence

refers to the ability to recognize, understand, and manage one's own emotions, as well as the emotions of others, to improve personal and professional relationships.

Self Confidence

The belief in one's abilities, capacities, and judgments.

Shared Leadership

A leadership style where control and decision-making responsibilities are distributed among members of a group or team, rather than centralized in a single leader.