The following transactions of Samuel James occurred during 2018:
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Requirements
1. Journalize required transactions, if any, in James's general journal. Explanations are not required.
2. What is the balance in Estimated Warranty Payable assuming a beginning balance of $0?
Requirement 1. Journalize required transactions, if any, in James's general journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. For transactions that do not require an entry, make sure to enter "No entry required" in the first cell in the "Accounts" column and leave all other cells blank. Check your spelling carefully and do not abbreviate.)
Apr. 30: James is party to a patent infringement lawsuit of $220,000. James's attorney is certain it is remote that James will lose this lawsuit.
Date
Apr. 30
Accounts
Debit
Credit
1 More Info
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James is party to a patent infringement lawsuit of $220,000. James's attorney is certain
Apr. 30
it is remote that James will lose this lawsuit.
Jun. 30
Estimated warranty expense at 2% of sales of $430,000.
Jul. 28
Warranty claims paid in the amount of $5,600.
James is party to a lawsuit for copyright violation of $160,000. James's attorney advises
that it is probable James will lose this lawsuit. The attorney estimates the loss at
Sep. 30
$160,000.
James estimated warranty expense on sales for the second half of the year of $550,000
Dec. 31
at 2%.
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