Question

Handy Holly Co. provides a variety of household repairs and warranties her work for a six-month period. Holly provided $13,000 of service fees during the month and anticipates that warranty repairs for these sales will total $400. The entry that Holly will make to record the estimated warranty expense will include a credit which account

Answer 1

Answer:

Estimated warranty liability

Explanation:

The journal entry is as follows

Estimated warranty expense Dr

     To Estimated warranty liability

(Being the warranty expense is recorded)

For recording the estimated warranty expense, we simply debited the estimated warranty expense and credited the estimated warranty liability so that the proper posting could be done