10 points to expect warranty costs to equal 6 of dollar sale

10 points to expect warranty costs to equal 6% of dollar sales The following tr Nov. 11 Sold 80 razors for 4,800 cash 30 peterences

Solution

GENERAL JOURNAL Date Account Title Debit Credit Nov11 Cash $4,800 Sales Revenue $4,800 Nov11 Cost of goods sold $1,200 (15*80) Inventory $1,200 Nov30 Warranty expense $288 (0.06*4800) Warranty Liability $288 Dec 09 Warranty Liability $240 (16*15) Cash $240 Dec 16 Cash $14,400 Sales Revenue $14,400 Dec16 Cost of goods sold $3,600 (240*15) Inventory $3,600 Dec29 Warranty Liability $480 (32*15) Cash $480 Dec31 Warranty expense $864 (0.06*14400) Warranty Liability $864