(Answered) Question - spoiled baby corp spc sells baby buggies recent

Accounting

Question - 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 20x1 monthly sales are $481,000.

The following warranty claims were made against June sales.

July 8 210 July 14 450

July 16 900 July 21 385

July 26 421 July 28 772

Aug 4 1,795 Aug 8 921

Aug 14 267 Aug 17 1,022

Aug 25 186 Aug 27 755

Aug 29 548 Aug 30 899

Sept 2 111 Sept 3 219

Sept 5 1,135 Sept 14 816

Sept 18 242 Sept 24 987

Sept 27 147 Sept 28 1,587

Sept 29 788 Sept 30 489

Oct 1 1188 Oct 8 1387

Oct 14 489 Oct 17 577

Oct 21 1,967 Oct 27 927

Oct 28 683 Oct 29 492

Oct 30 897 Oct 31 1572

Prepare the Journal entries required to create and close the warranty period.

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