At the beginning of 2013, MacKenzie, Inc. had a balance in the Warranty Payable account of $5,600. During the year MacKenzie sold for $250,000 several products that carried a two-year warranty. MacKenzie estimated that warranty expense would be 6% of sales for the year.
a) Prepare MacKenzie's year-end adjusting journal entry for warranty expense.
b) If MacKenzie's incurred actual warranty cost is $11,500 during 2013, what is the balance in the Warranties Payable account after the adjusting entry is made?

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The Answer of At the beginning of 2013, MacKenzie, Inc. had a balance in the Warranty Payable account of $5,600. During the year MacKenzie sold for $250,000 several products that carried a two-year warranty. MacKenzie estimated that warranty expense would be 6% of sales for the year.
a) Prepare MacKenzie's year-end adjusting journal entry for warranty expense.
b) If MacKenzie's incurred actual warranty cost is $11,500 during 2013, what is the balance in the Warranties Payable account after the adjusting entry is made?

At the Beginning of 2013, MacKenzie, Inc