Req 1. | ||||||
November month: | ||||||
Warranty expense for Nov: | ||||||
Sales units | 2000 | |||||
Cost of Scanner per unit | 35 | |||||
Total cost of Scanner sold | 70000 | |||||
Estimated Warranty cost | 18% | |||||
Estimated warranty expenses for Nov | 12600 | |||||
December Month: | ||||||
Sales units | 5500 | |||||
Cost of Scanner per unit | 35 | |||||
Total cost of Scanner sold | 192500 | |||||
Estimated Warranty cost | 18% | |||||
Estimated warranty expenses for Dec | 34650 | |||||
Req 2. | ||||||
Warranty expenses for Jan: | ||||||
Sales units | 275 | |||||
Cost of Scanner per unit | 35 | |||||
Total cost of Scanner sold | 9625 | |||||
Estimated Warranty cost | 18% | |||||
Estimated warranty expenses for Jan | 1732.5 | |||||
Req 3. | ||||||
Estimated Warranty liability for Dec: | ||||||
Total Warranty expense for Nov and Dec | 47250 | |||||
(it is total warranty liability) (12600+34650) | ||||||
Less: Warranty expenses incurred in 2 months | 6650 | |||||
(150+40) scanners replaced @ 35 per scanner | ||||||
Estimated Warranty liability for Dec: | 40600 | |||||
Req 4. | ||||||
Estimated Warranty liability for Jan: | ||||||
Estimated warranty liability for Dec | 40600 | |||||
Add: Warranty expense for Jan | 1732.5 | |||||
Less: Expenses incurred in replacing scanner | 2205 | |||||
(63 scanners @ 35) | ||||||
Estimated Warranty liability for Jan: | 40127.5 | |||||
Req 5. | ||||||
Journal entries: | ||||||
Date | Accounts title and explanations | Debit $ | Credit $ | |||
15.11.17 | Cash account | 110000 | ||||
Sales revenue | (2000*55) | 110000 | ||||
Cost of goods sold | 70000 | |||||
Merchandise inventory (2000*35) | 70000 | |||||
30.11.17 | Warranty expenses | 12600 | ||||
Estimated warranty liabilities | 12600 | |||||
08.12.17 | Estimated Warranty liabilities | 5250 | ||||
Merchandise inventory (150*35) | 5250 | |||||
15.12.17 | Cash account | 302500 | ||||
Sales revenue | (5500*55) | 302500 | ||||
Cost of goods sold | 192500 | |||||
Merchandise inventory (5500*35) | 192500 | |||||
29.12.17 | Estimated warranty liabilities | 1400 | ||||
Merchandise inventory (40*35) | 1400 | |||||
31.12.17 | Warranty expenses | 34650 | ||||
Estimated warranty liabilities | 34650 | |||||
14.01.18 | Cash account | 15125 | ||||
Sales revenue | (275*55) | 15125 | ||||
Cost of goods sold | 9625 | |||||
Merchandise inventory (275*35) | 9625 | |||||
20.01.18 | Estimated warranty liabilities | 2205 | ||||
Merchandise inventory (63*35) | 2205 | |||||
31.01.18 | Warranty expenses | 1732.5 | ||||
Estimated warranty liabilities | 1732.5 | |||||
Thank you!!! CHAPTER 10 Current Liabilities Problem 10-3A Estimated product warranty llabilities LO4 CHECK FIGURES: 2....
Thank you very much for this question! Problem 10-3A Estlmated product warranty liabilitles L04 CHECK FIGURES: 2. $1,750; 3. $40,600; 4. $40,145 On November 10, 2017, Singh Electronics began to buy and resell scanners for $65 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned simply throws it away and mails a new one from...
please full calculation and explanation Hated product warranty labilities LO4 e yeats CHECK FIGURES: 2. $1,750: 3. $40.600; 4. $40.145 On November 10, 2017, Singh Electronics began to bug and resell scanners for $55 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from...
Thank you for answering this I’m a little confused and would really appreciate help!! ☺️ Problem 10-3A Estimated product warranty liabilities LO4 CHECK FIGURES: 2. $1,750; 3. $40,600; 4. $40,145 On November 10, 2017, Singh Electronics began to buy and resell scanners for $55 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company...
I already sent this question twice and the answer I was given was wrong twice! The correct answers are at the top of the question! Thank you very much!!☺️ Problem 10-3A Estimated product warranty liabilities LO4 CHECK FIGURES: 2. $1,750; 3. $40,600; 4. $40,145 On November 10, 2017, Singh Electronics began to buy and resell scanners for S perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner...
On November 10, 2017, Singh Electronics began to buy and resell scanners for $52 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner 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 scanner is only $32. Singh estimates warranty costs based on...
Required information Problem 9-4A Warranty expense and liability estimation LO P4 The following information applies to the questions displayed below.) On October 29, 2017. Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual Inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and malls a new one from Merchandise Inventory to the customer. The company's cost per new razor...
ted Liabilities Help Save & Exit Required information Problem 11-4A Warranty expense and liability estimation LO P4 [The following information applies to the questions displayed below) On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer....
What is the balance of the Estimated Warranty Liability account as of January 31? Problem 9-4A (Algo) Estimating warranty expense and liability LO P4 (The following information applies to the questions displayed below.] On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and...
previous information : warranty expense for november 2016=$216 warranty expense for December 2016=$648 warranty expense for January 2017=$432 Required information Problem 11-4A Warranty expense and liability estimation LO P4 (The following information applies to the questions displayed below.) On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards...
Problem 9-4A Warranty expense and liability estimation LO P4 On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $20 and its retail selling price is $75 in both...