P11-28A Journalizing liability transactions;The following transactions of Brooks Garrett occurred during 2014;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. The;attorney estimates the loss at $100,000.;Dec. 31 Garrett estimates warranty expense on sales for the second half of the;year of $500,000 at 2%.;Requirements;1. Journalize required transactions, if any, in Garrett?s general journal.;Explanations are not required.;2. What is the balance in Estimated Warranty Payable?
Paper#23640 | Written in 18-Jul-2015Price : $32