Warranties Bombeck Company sells a product for $1,570. When the customer buys it, Bombeck provides a one-year warranty.

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Warranties Bombeck Company Sells A Product For 1 570 When The Customer Buys It Bombeck Provides A One Year Warranty 1 (91.72 KiB) Viewed 32 times

Warranties Bombeck Company sells a product for $1,570. When the customer buys it, Bombeck provides a one-year warranty. Bombeck sold 170 products during 2016. Based on analysis of past warranty records, Bombeck estimates that repairs will average 3% of total sales. Required: 1. Prepare the journal entry to record the estimated liability. Description Journal Description Debit Credit Debit Assets Credit = Assets Balance Sheet Liabilities 2. Assume that during 2016, products under warranty must be repaired using repair parts from inventory costing $7,649. Prepare the journal entry to record the repair of products. Journal Balance Sheet + Liabilities Stockholders' Equity + Revenues Stockholders' Equity Income Statement Revenues Expenses Income Statement Expenses Net Income Net Income