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Question
Nelson Industries warrants its products for one year. The estimated product warranty is 4.3% of sales. Sales were $475,000 for September. In October, a customer received warranty repairs requiring $215 of parts and $65 of labor.
a. Journalize the adjusting entry required at September 30, the end of the first month of the current fiscal year, for the estimated product warranty expense.
b. Journalize the entry for the warranty work provided in October.
Answer
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