What is the balance in estimated warranty payable, Accounting Basics

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What is the balance in estimated warranty payable

The following transactions of Brooks Garrett occurred during 2012:

Apr 30 Garrett is party to a patent infringement lawsuit of $200,000. Garrett's attorney is certain it is remote that Garrett will lose this lawsuit.
Jun 30 Estimated warranty expense at 2% of sales of $400,000.
Jul 28 Warranty claims paid in the amount of $6,000.
Sep 30 Garrett is party to a lawsuit for copyright violation of $100,000. Garrett's attorney advises that it is probable Garrett will lose this lawsuit.
Dec 31 Garrett estimates warranty expense on sales for the second half of the year of $500,000 at 2%.

1. Journalize required transactions, if any, in Garrett's general journal. Explanations are not required.
2. What is the balance in Estimated warranty payable?

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Accounting Basics: What is the balance in estimated warranty payable

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Accounting Basics: What is the balance in estimated warranty payable

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Accounting Basics: What is the balance in estimated warranty payable

Reference No:- TGS0707400

Recent Questions Asked Accounting Basics

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