Spoiled Baby Corp (SPC) sells baby buggies.
Spoiled Baby Corp (SPC) sells baby buggies. Recent changes in the law required SPC to warranty its products for 90 days and you must set up the required accounts. Historical Data indicates that 6% of monthly sales result in warranty claims. The June 20×1 monthly sales are $481,000.The following warranty claims were made against June sales.July 8 210 July 14 450July 16 900 July 21 385July 26 421 July 28 772Aug 4 1,795 Aug 8 921Aug 14 267 Aug 17 1,022Aug 25 186 Aug 27 755Aug 29 548 Aug 30 899Sept 2 111 Sept 3 219Sept 5 1,135 Sept 14 816Sept 18 242 Sept 24 987Sept 27 147 Sept 28 1,587Sept 29 788 Sept 30 489Oct 1 1188 Oct 8 1387Oct 14 489 Oct 17 577Oct 21 1,967 Oct 27 927Oct 28 683 Oct 29 492Oct 30 897 Oct 31 1572Prepare the Journal entries required to create and close the warranty period.
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