Bean Company has the following selected transactions:

The following adjustment data are noted at the end of the month:
1. Interest expense should be accrued on the note.
2. Some sales were made under warranty. Of the units sold under warranty this month, 250 are expected to become defective. Repair costs are estimated to be $30 per defective unit.
Instructions: Prepare month end adjusting journal entries for Bean Company.

Question

Bean Company has the following selected transactions:
 
The following adjustment data are noted at the end of the month:
1. Interest expense should be accrued on the note.
2. Some sales were made under warranty. Of the units sold under warranty this month, 250 are expected to become defective. Repair costs are estimated to be $30 per defective unit.
Instructions: Prepare month end adjusting journal entries for Bean Company.

Quizplus · Accepted Answer

The Answer of Bean Company has the following selected transactions:
 
The following adjustment data are noted at the end of the month:
1. Interest expense should be accrued on the note.
2. Some sales were made under warranty. Of the units sold under warranty this month, 250 are expected to become defective. Repair costs are estimated to be $30 per defective unit.
Instructions: Prepare month end adjusting journal entries for Bean Company.

Bean Company Has the Following Selected Transactions