Homework Answers
Ans.
Journal entry to be recorded at end of 2018
DR warranty expense $3.8b CR warranty Payable $ 3.8b
| Date | Particulars | DR | CR |
| 2018 | Warranty Expenses A/c | $ 3.8b | |
| To Warranty Payable A/c | $ 3.8b |
Journal Entry to be recorded at the end of 2019
DR Warranty Payable $ 3.7b CR Cash $ 3.7b
| Date | Particulars | DR | CR |
| 2019 | Warranty Payable A/c | $ 3.7b | |
| To Cash A/c | $ 3.7b |
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Apple, Inc. offers a 1 year warranty on its Apple products. In 2018 Apple estimated $3.8b...
The first image is the original question, the following images are the answer choices given for...
The first image is the original question, the following images
are the answer choices given for each box
Question 3 1 pts Apple, Inc. offers a 1 year warranty on its Apple products. In 2018 Apple estimated $3.8b in warranty claims for phones they sold in 2018. During 2019 Apple incurred $3.7b expenses to satisfy warranty claims. What journal entry does Apple record at the end of 2018? [Select] What journal entry does Apple record in 2019? [Select] Question 3...
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We are hired as consultants to assist Arctica Co. in accounting for its warranty expenses. Arctica...
We are hired as consultants to assist Arctica Co. in accounting
for its warranty expenses. Arctica offers a one-year warranty
covering parts on each snowmobile it sells. The following Tableau
Dashboard is provided to assist us.
Estimated Warranty Expense vs. Actual Warranty Claims
Purple Graph
Actual warranty claim: $17,660 (1 year ago)
Actual warranty claim: $21,660 (2 years ago)
Actual warranty claim: $13,070 (3 years ago)
Actual warranty claim: $12,122 (4 years ago)
Orange Graph
Estimated warranty expense: $14,800 (1...
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Jumbo Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 3%...
Jumbo Sales Corporation offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2013, the company had $595,000 of sales. In the same year, Jumbo paid out $8,500 of warranty payments. Which of the following is the entry needed to record the disbursement of warranty payments? Answers: Warranty Expense 8,500 Estimated Warranty Payable 8,500 Warranty Expense 17,850 Sales Revenue 17,850 Warranty Expense 17,850 Estimated Warranty Payable 17,850...
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Wildhorse Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective...
Wildhorse Corporation sells computers under a 2-year warranty contract that requires the corporation to replace defective parts and to provide the necessary repair labor. During 2020, the corporation sells for cash 364 computers at a unit price of $2,380. On the basis of past experience, the 2-year warranty costs are estimated to be $160 for parts and $200 for labor per unit. (For simplicity, assume that all sales occurred on December 31, 2020.) The warranty is not sold separately from...
The first image is the original question, the following images
are the answer choices given for each box
Question 3 1 pts Apple, Inc. offers a 1 year warranty on its Apple products. In 2018 Apple estimated $3.8b in warranty claims for phones they sold in 2018. During 2019 Apple incurred $3.7b expenses to satisfy warranty claims. What journal entry does Apple record at the end of 2018? [Select] What journal entry does Apple record in 2019? [Select] Question 3...
Northwest Electric had cash sales for the month totaling $90,000. Northwest offers a 6-month warranty on its services. If Northwest estimates warranty claims will equal 4% of sales, what is the journal entry to record the estimated warranty expense for the month? O A Debit Warranty expense, $3,600; credit Sales revenue. $3,600 OB. Debit Estimated warranty payable, $3,600; credit Warranty expense, $3,600 OC. Debit Warranty expense, $3,600; credit Estimated warranty payable, $3,600 OD. Debit Warranty expense, $3,600; credit Cash, $3,600
We are hired as consultants to assist Arctica Co. in accounting
for its warranty expenses. Arctica offers a one-year warranty
covering parts on each snowmobile it sells. The following Tableau
Dashboard is provided to assist us.
Estimated Warranty Expense vs. Actual Warranty Claims
Purple Graph
Actual warranty claim: $17,660 (1 year ago)
Actual warranty claim: $21,660 (2 years ago)
Actual warranty claim: $13,070 (3 years ago)
Actual warranty claim: $12,122 (4 years ago)
Orange Graph
Estimated warranty expense: $14,800 (1...
Happy Trails guarantees its snowmobiles for three years. Company experience indicates that warranty costs will be approximately 3% of sales. Assume that the Happy Trails dealer in Colorado Springs made sales totaling $500,000 during 2018. The company received cash for 10% of the sales and notes receivable for the remainder. Warranty payments totaled $12,000 during 2018. Read the requirements. Requirement 1. Record the sales, warranty expense, and warranty payments for the company. Ignore cost of goods sold. (Record debits first,...
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