Question

A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is:_________
a. Debit Warranty Expense $7,400; credit Soles $7400
b. Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400.
c. Debit Estimated Warranty Liability $7,400;credit Warranty Expense $7,400
d. Debit Estimated Warranty Liability $7,400; credit Cash $7,400,
e. No entry is recorded until the items are returned for warranty repairs

Answer 1

A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is a. Debit Warranty Expense $7,400; credit Soles $7400

Assets can be both long-term and short-term and can be tangible (physical) or intangible (non-physical). Intellectual property, PP&E, and goodwill are examples of assets. Expenses: Costs associated with running a business on a day-to-day basis.

Expenses are the operating costs that a business incurs to generate revenue. As the saying goes, "it costs money to make money" Common costs include supplier payments, employee wages, factory leases, and equipment depreciation.

Learn more about expenses here

https://brainly.com/question/25530648

#SPJ4