PE 10-7B Estimated warranty liability Quantas Industries sold $325,000 of consumer electronics
January 8th, 2018
PE 10-7B Estimated warranty liabilityQuantas Industries sold $325,000 of consumer electronics during July under a nine-month warranty. The cost to repair defects under the warranty is estimated at 4.5% of the sales price. On November 11, a customer was given $220 cash under terms of the warranty.Provide the journal entry for (a) the estimated warranty expense on July 31 for July sales, and (b) the November 11 cash payment.
