The Estimated Warranty Payable account shows a balance of $10,000 at the end of 2024. This reflects warranty payments made during the year, starting with a zero balance on January 1, 2024.
To post the 2024 transactions to the Estimated Warranty Payable T-account, you need to consider the debit and credit entries:
1. Beginning Balance (January 1, 2024):
- Beg. Bal.: Estimated Warranty Payable $0
2. Warranty Payments Transaction (Date: 2024):
- Debit: Estimated Warranty Payable $10,000
- Credit: Cash $10,000
3. Ending Balance (December 31, 2024):
- End. Bal.: Estimated Warranty Payable $10,000
So, at the end of 2024, the Estimated Warranty Payable account has a balance of $10,000.
The complete question is:
Read the warranty payments for the company.
Date
2024
Accounts and Explanation
Estimated Warranty Payable Debit 10,000
Cash Credit 10,000
Warranty payments.
Assume the Estimated Warranty Payable is $0 on January 1, 2024. Post the 2024 transactions to the Estimated Warranty Payable T-account. At the end of 2024, how much in Estimated Warranty Payable does the company owe?
Use the T-account to determine the ending balance for the Estimated Warranty Payable account. Use a "Beg. Bal." posting reference to show the beginning balance of the account and an "End. Bal." posting reference to show the ending balance of the account. (Enter a "0" for any zero amounts.)