Question

Perez Co. sells lawn mowers and warranties them for one year. Perez made an adjusting entry at the end of last year to record the warranty expense. In February of the current year, a customer needed a $50 repair to a lawn mover. The entry to record the repair includes a debit to ___.

Answer 1

The entry to record the repair includes a debit to Warranty expense.

Warranty expenses

Based on the information given the appropriate journal entry to record the transaction assuming in  February of the current year, a customer needed a $50 repair to a lawn move is:

Perez Co journal entry

Debit to Warranty Expense $50

Credit to Estimated Warranty Liability $50
(To record repair)

Inconclusion the entry to record the repair includes a debit to Warranty expense.

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