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ACC - Journal P11-28A Warranty & Contingent Liab




Question;P11-28A Journalizing liability transactionsThe 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%.Requirements1. Journalize required transactions, if any, in Garrett?s general journal. Explanations are not required.2. What is the balance in Estimated Warranty Payable?


Paper#39944 | Written in 18-Jul-2015

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