[thisquestion]

I am really confused with what to do!

The accounting records of Shotwell, Inc. included the followinf balances at the end of the period:
.
Estimated warranty payable... Sales Revenue.. Warranty Expense
Beginning balance: 4100 CR... 141 000 CR... NIL

In the past, Shotwell's warranty expense has been 7% of sales. During the current period, shotwell paid 10430 to satisfy the warranty claims of customers

1) Record Shotwell's warranty expense for the period and the company's cash payments during the period to satisfy warranty claims.

2) What ending balance of Esitimated Warranty Payable will Shotwell report on its balance sheet?

[terryg752]

I am not sure but I think it will be like this:

Warranty Expense DEBIT 10430

Cash CREDIT 10430

Estimated Warranty Payable Debit 10430

BALANCE SHEET:

Esitimated Warranty Payable = 4100 - 10430

= 6330 DR