Problem
Jet-Clean sold washing machines totaling $1 million during 2019. Each washing machine carries a 3-year warranty. Jet-Clean estimates that warranty repairs on the washing machines will cost 1% of the sales price.
a) Record the entry to accrue Jet-Clean's warranty costs at the end of 2019.
b) During the first quarter of 2020, Jet-Clean paid $750 for washing machine repairs under warranty.