Answer:
a. Nov 11, 2017
Dr Cash $4,900
Cr sales $4,900
Nov 30, 2017
Dr Warranty expense $294
Cr Estimated warranty Liabilities $294
Dec 9, 2017
Dr Estimated warranty Liabilities $196
Cr Cash $196
Dec 16, 2017
Dr Cash $14,700
Cr sales $14,700
Dec 29, 2017
Dr Estimated warranty Liabilities $392
Cr Cash $392
Dec 31, 2017
Dr Warranty expense $882
Cr Estimated warranty Liabilities $882
b. Jan 5,2018
Dr Cash $9,800
Cr Sales$9,800
Jan 17,2018
Dr Estimated warranty Liabilities $462
Cr Cash $462
Dec 31,2018
Dr Warranty expense $588
Cr Cash $588
Explanation:
a. Preparation of the journal entries to record above transactions and adjustments for 2017
Nov 11, 2017
Dr Cash $4,900
Cr sales $4,900
(Being to record razors sold for cash)
Nov 30, 2017
Dr Warranty expense $294
Cr Estimated warranty Liabilities $294
($4900*6%)
(Being to record warranty expense)
Dec 9, 2017
Dr Estimated warranty Liabilities $196
Cr Cash $196
(14 razors*14)
(Being to replaced 14 razors)
Dec 16, 2017
Dr Cash $14,700
Cr sales $14,700
(Being razors sold for cash)
Dec 29, 2017
Dr Estimated warranty Liabilities $392
Cr Cash $392
(28 razors*14)
(Being to replaced 28 razors)
Dec 31, 2017
Dr Warranty expense $882
Cr Estimated warranty Liabilities $882
($14,700*6%)
(Being to record warranty expense)
b. Preparation of the journal entries to record above transactions and adjustments for 2018
Jan 5,2018
Dr Cash $9,800
Cr Sales$9,800
(Being to record razors sold for cash)
Jan 17,2018
Dr Estimated warranty Liabilities $462
Cr Cash $462
(33 razors*14)
(Being to replaced 33 razors)
Dec 31,2018
Dr Warranty expense $588
Cr Cash
(6%*$9,800) $588
(Being to record warranty expense)
