E1122 bookstatic Question Help McNight Industries completed

E11-22 (book/static) Question Help McNight Industries completed the following transactions during 2018 (Click the icon to view the transactions.) Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1 : Made sales of $52,000. McNight estimates that warranty expense is 6% of sales. (Record only the warranty expense.) Date Accounts Debit Credit Nov. 1

Solution

$ Sales revenue               52,000 Percentage of estimated warranty expenses 6% Estimated Warranty expenses ( $ 52,000 x 6% )                 3,120 Mcnight Industries Journal entry for warranty expenses date Account\'s tittle Debit $ Credit $ 1-Nov Warranty Expenses                 3,120 Estimated Warranty Liability                 3,120 ( To be record warranty liability based estimation )