Answer:
a.
Warranty Expenses $6,330 (debit)
Provision of Warranty Expense $6,330 (credit)
b.
Provision of Warranty Expense $240 (debit)
Raw Materials : Parts $170 (credit)
Labor $70 (credit)
Explanation:
<u>Entry to record the warranty </u><u><em>estimate</em></u><u> for the year :</u>
<em>Hint : Recognize an Expense : Warranty Expenses and a Liability : Provision of Warranty Expense</em>
Warranty Expenses $6,330 (debit)
Provision of Warranty Expense $6,330 (credit)
Warranty Expenses Calculation = $211,000 × 3% = $6,330
<u>When customer received warranty cost</u>
<em>Hint : Utilize the Provision that had been previously recognized.</em>
Provision of Warranty Expense $240 (debit)
Raw Materials : Parts $170 (credit)
Labor $70 (credit)