Answer:
a. Nov 11, 2017
Dr Cash $4,900
Cr Sales $4,900
Nov 30, 2017
Dr Warranty Expense $294
Cr Estimated Warranty Liabilities $294
Dec 9, 2017
Dr Estimated Warranty Liabilities $196
Cr Cash $196
Dec 16, 2017
Dr Cash $14,700
Cr Sales $14,700
Dec 29, 2017
Dr Estimated Warranty Liabilities $392
Cr Cash $392
Dec 31, 2017
Dr Warranty Expense $882
Cr Estimated Warranty Liabilities $882
b. Jan 5, 2018
Dr Cash $9,800
Cr Sales $9,800
Jan 17, 2018
Dr Estimated Warranty Liabilities $462
Cr Cash $462
Dec 31, 2018
Dr Warranty Expense $588
Cr Cash $588
Explanation:
a. Preparation of the journal entries to record the transactions and adjustments for 2017
Nov 11, 2017
Dr Cash $4,900
Cr Sales $4,900
(This records the sale of razors for cash)
Nov 30, 2017
Dr Warranty Expense $294
Cr Estimated Warranty Liabilities $294
($4,900*6%)
(This records the warranty expense)
Dec 9, 2017
Dr Estimated Warranty Liabilities $196
Cr Cash $196
(14 razors*14)
(This represents the replacement of 14 razors)
Dec 16, 2017
Dr Cash $14,700
Cr Sales $14,700
(This records the cash sale of razors)
Dec 29, 2017
Dr Estimated Warranty Liabilities $392
Cr Cash $392
(28 razors*14)
(This represents the replacement of 28 razors)
Dec 31, 2017
Dr Warranty Expense $882
Cr Estimated Warranty Liabilities $882
($14,700*6%)
(This records warranty expense)
b. Preparation of journal entries to reflect the transactions and adjustments for 2018
Jan 5, 2018
Dr Cash $9,800
Cr Sales $9,800
(This records razors sold for cash)
Jan 17, 2018
Dr Estimated Warranty Liabilities $462
Cr Cash $462
(33 razors*14)
(This indicates the replacement of 33 razors)
Dec 31, 2018
Dr Warranty Expense $588
Cr Cash
(6%*$9,800) $588
(This indicates the recording of warranty expense)
