Question 3 [30 points]On October 1, WestCo began to buy and resell kettles for $43 each. WestCo uses the perpetual method to account for inventories. The kettles are covered under a warranty that requires the company to replace any defective kettle within 90 days. When a kettle is returned, the company simply throws it away and mails a new one from inventory to the customer. The company's cost for a new kettle is only $17. The manufacturer has advised the company to expect warranty costs to equal 10% of the units sold.Record the following transactions in the journal provided.Record transaction letters as descriptions.Enter the dates in the format dd/mmm (ie. 15/Jan).October 9 : Sold 400 kettles for $17,200 cash.October 31 : Recognized warranty expense for October with an adjusting entry.November 1 : 19 kettles that were returned under warranty were replaced.November 6 : Sold 340 kettles for $14,620 cash.November 25 : 21 kettles that were returned under warranty were replaced.November 30 : The warranty expense for the month of November was recognized with an adjusting entry
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