Digital audio works inc warrants its products for 1year the, Ask an Expert

Accounting

Digital Audio Works, Inc. warrants its products for 1year. The estimated product warranty is 1½% of sales. Assume that sales were $975,000 forJanuary. In February, a customer received warranty repairsrequiring $5,280 of parts.

Determine the warranty liability at January 31, the endof the first month of the current year.
What accounts are decreased for the warranty work provided in February?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9992383

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