4. Thomas guarantees its vacuums for five years. Prior experience indicates that warranty...
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4. Thomas guarantees its vacuums for five years. Prior experience indicates that warranty costs will be approximately 7% of sales. Assume that Thomas made sales totaling $210,000 during 2018. Record the warranty expense for the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit No entry required Cash Estimated Lawsuit Payable Estimated Warranty Payable Loss from Lawsuit Warranty Expense
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