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Posted: May 8th, 2024
On September 11, 2010, Home Store sells a mower
On September 11, 2010, Home Store sells a mower for $400 with a one-year warranty that covers parts. Warranty expense is estimated at 5% of sales. On July 24, 2011, the mower is brought in for repairs covered under the warranty requiring $35 in materials taken from the Repair Parts Inventory. Prepare the July 24, 2011, entry to record the warranty repairs.2. Paris Company offers an annual bonus to employees if the company meets certain net income goals. Prepare the journal entry to record a $10,000 bonus owed to its workers (to be shared equally) at calendar year-end.
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