Professional Documents
Culture Documents
QUESTION 5 b (2 marks)
Dr Warranty expense $12,500
Cr Provision for Warranty $12,500 1 Mark
Dr Provision for Warranty $10,000
Cr Inventory $10,000
1 Mark
Note: If the answer contains other words than Warranty, that are similar in meaning,
such as for example Replacement Policy award the marks. However, the journal
entries must make it clear whether it is an expense or a provision.