Question 2 1 pts A company sells washing machines for $1000 each. Each washing machine...
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Question 2 1 pts A company sells washing machines for $1000 each. Each washing machine has a 1 year warranty provided to the customer that the washer will be free of defects. The company estimates warranty expenses to be in accordance with GAAP. Since defects do happen from time to time the company estimates $2/washing machine is a reasonable estimate for warranty expenses. What is the journal entry at the time of sale related to the warranty offered to customers if 300 washing machines are sold during the month? No journal needed until actual defects occur O Debit: Warranty Expense $600, Credit Estimated Warranty Payable for $600 O Debit AR $300,000. Credit: Sales $300.000 O Debit: Sales $600, Credit Cash $600
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