Question

the following transactions of belkin manufacturing occurred during 2025
view the transactions.
requirements

1. journalize required transactions, if any, in belkin manufacturings general journal explanations are not required
2. what is the balance in estimated warranty payable assuming a beginning balance of $0?

jun 30 estimated warranty expense at 3% of sales of $350,000.
jul 28 warranty claims paid in the amount of $6,300

Explanation:

Step1: Journalize July 28 transaction

When warranty claims are paid, we debit the Estimated Warranty Payable (to reduce the liability) and credit Cash (since cash is going out).
Debit: Estimated Warranty Payable \(6,300\)
Credit: Cash \(6,300\)

Step2: Calculate the balance in Estimated Warranty Payable

The formula for the ending balance of Estimated Warranty Payable is \(Ending\ balance=Beginning\ balance + Estimated\ warranty\ expense - Warranty\ claims\ paid\)
Given \(Beginning\ balance = 0\), \(Estimated\ warranty\ expense=3\%\times350,000 = 10,500\), \(Warranty\ claims\ paid = 6,300\)

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LATEXBLOCK0
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Answer:

1. For July 28:

Date	Accounts	Debit	Credit
	Cash		6,300

1. The balance in Estimated Warranty Payable is \(\$4,200\)