Parker Manufacturing Co. warrants its products for one year. The estimated product warranty is 2.5% of sales. Assume that sales were $600,000 for January. In February, a customer received warranty repairs requiring $200 of parts and $110 of labor.
a. Journalize the adjusting entry required at lanuary 31·the end of the first month of the current fiscal year, to record the accrued product warranty warranty repairs requiring $200 of parts and $110 of labor.
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