continued b At 30 June 2017 Hospital Equipment adjusted its Provision for

Continued b at 30 june 2017 hospital equipment

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QUESTION 5 continuedb) At 30 June 2017, Hospital Equipmentadjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date. Sales for the year ended 30 June 2017 were $3,200,000. On 7 September 2017, a successful cash claim for warranty on faulty products of $1,200 was made on the company. Required: i. Prepare the general journal entry at 30 June 2017 to account for the Provision for Warranties. (2 marks) ii. Record the payment of the warranty claim on 7 September 2017 in general journal format. (2 marks) General Journal Date Accounts Debit Credit End of QUESTION 5, the Exam paper continues on the next page
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