Ask Question
12 December, 13:06

Hunter's Home Remodeling had cash sales for the month of May totaling $ 49 comma 000. Hunter offers a 1minusyear warranty on its construction services. If Hunter estimates warranty claims will equal 6 % of sales, what is the journal entry to record the estimated warranty expense for the month?

+3
Answers (1)
  1. 12 December, 13:23
    0
    Journal Entry

    Dr. Cr.

    Cash $49,000

    Sales $46,060

    Warranty Payable $2,940

    Explanation:

    Cash received against the sales with warranty is recorded into two parts the sales amount and warranty amount.

    Total cash receipt = $49,000

    Warranty = Total Sales x Warranty rate

    Warranty = $49,000 x 6%

    Warranty = $2,940

    Sales value = $49,000 - $2,940 = $46,060
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Hunter's Home Remodeling had cash sales for the month of May totaling $ 49 comma 000. Hunter offers a 1minusyear warranty on its ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers