Question - Accrued Product Warranty
Lachgar Industries warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $397,000 for September. In October, a customer received warranty repairs requiring $265 of parts and $95 of labor.
a. Journalize the adjusting entry required at September 30, the end of the first month of the current fiscal year, to record the accrued product
b. Journalize the entry to record the warranty work provided in October.