Chapter 4
Current Liabilities
172
Required
Record the journal entry for the following.
a) The sale of the passes
b) The entry to be recorded on September 30
Date
Account Title and Explanation
Debit
Credit
AP-11A (
8
)
Lee-Yau Enterprises sells heavy-duty lawnmower equipment. On May 4, 2017 it sold a
lawnmower (on account) for $45,000 which included a four-year unlimited warranty. The
corporation’s accountant estimates that $3,000 will be paid out in warranty obligations. The
cost of goods sold is $17,000. Assume Lee-Yau uses a perpetual inventory system. Prepare the
journal entries relating to these transactions.
Date
Account Title and Explanation
Debit
Credit
