Determine the warranty liability at january


Digital Audio Works, Inc. warrents its products for 1 year. The estimated product warranty is 1 1/2% of sales. Assume that sales were $975,000 for January. In February, a customer received warranty repairs requiring $5,280 of parts. (a) Determine the warranty liability at January 31, the end of the first month of the cuurent year. (b) What accounts are decreased for the warranty work provided in February?

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Accounting Basics: Determine the warranty liability at january
Reference No:- TGS0100031

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