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Question - Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 8% of sales. Assume that sales were $520,000 for January. On February 7, a customer received warranty repairs requiring $180 of parts and $70 of labor.
Required -
a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. Refer to the Chart of Accounts for exact wording of account titles.
b. Journalize the entry to record the warranty work provided in February. Refer to the Chart of Accounts for exact wording of account titles.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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