The captain company began operations on january 1 2014 the

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The Captain Company began operations on January 1, 2014. The company estimated that $0.10 of warranty costs will be incurred for each $1 of sales. In 2014, Captain's sales were $400,000, and payments arising out of warranty obligations were $18,000.

Required:

a.Prepare the 2014 journal entry(ies) for warranty expense and payments using the modified cash basis.

b.Prepare the 2014 journal entry(ies) for warranty expense and payments using the expense warranty accrual method

c.Prepare the 2014 journal entries for sales and warranties using the sales warranty accrual method.

Reference no: EM13567952

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