CC11 COOKIE CREATIONS
(a) Estimated liability, 2017
30 mixers sold X 10% = 3 mixers X $60 = $180
(b) 2017
Dec. 31 Warranty Expense ……………………………. 180
Warranty Liability …………………… 180
(c) 2018
CC11 (Continued)
(d) (Continued)
Warranty Liability
Date
Explanation
Ref.
Debit
Credit
Balance
Warranty Liability
2017
Dec. 31 Adjusting entry 180 180
2018
4 returned mixers (2017) 210 (30)
2 returned mixers (2018) 55 (85)
(e) 2018