On September 11, 2017, Home Store sells a mower (that costs $200) for $500 cash with a one-year warranty that covers parts. Warranty expense is estimated at 8% of sales. On July 24, 2018, the mower is brought in for repairs covered under the warranty requiring $35 in materials taken from the Repair Parts Inventory. Prepare the September 11, 2017, entry to record the mower sale, and the July 24, 2018, entry to record the warranty repairs.

Journal entries

Explanation:

The journal entries are shown below:

On September 11, 2017

Cash Dr $500

     To Sales $500

(Being the sales is recorded)

On September 11, 2017

Warranty expense $40                ($500 × 8%)

         To Estimated warranty liability $40

(Being the warranty expense is recorded)

On July 24, 2018

Estimated warranty liability $35

            To Repairs parts inventory $35

(Being the warranty repairs are recorded)

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.