On September 1, Home Store sells a mower (that costs $310) for $610 cash with a one-year warranty that covers parts. Warranty expense is estimated at 9% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $43 in materials taken from the Repair Parts Inventory.

Required:
Prepare the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs.

The preparation of the September 1 entry to record the mower sale (and cost of sale) and the January 24 entry to record the warranty repairs is as follows:

Journal Entries:

September 1:

Debit Cash $610

Credit Sales Revenue $610

To record the sales for cash.

Debit Cost of goods sold $310

Credit Inventory $310

To record the cost of goods sold.

Debit Warranty Expense $55

Credit Warranty Liability $55

To record the warranty expenses and liability.

January 24:

Debit Warranty Liability $43

Credit Repair Parts Inventory $43

To record the warranty liability incurred.

Transaction Analysis:

September 1: Cash $610 Sales Revenue $610

Cost of goods sold $310 Inventory $310

Warranty Expense $55 Warranty Liability $55 ($610 x 9%)

January 24: Warranty Liability $43 Repair Parts Inventory $43

Learn more about recording warranty transactions at https://brainly.com/question/17310475

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