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

question 51

Essay

Nash Industries changed its method of accounting for warranties from the cash basis to the accrual basis on January 1, 2013. 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:

Effective Permissions

The final permissions granted for a particular resource. Folder permissions are cumulative—the combination of the group and the person’s permissions. The deny permission overrides any allowed permission set for a user or a group. When NTFS and shared folder permissions are both used, the more restrictive of the two becomes the effective permissions.

SSID Broadcast

SSID Broadcast refers to the feature of a wireless router that broadcasts the name of the wireless network to make it visible to devices.

Wireless Network

A telecommunications network that enables devices to connect and communicate wirelessly, without the need for physical cables.

Wireless Devices

Electronic devices that communicate without the need for physical connections using electromagnetic waves, such as Wi-Fi or Bluetooth technologies.