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Help Save & Exit Swindell Inc. sold $1.200.000 worth of bicycles with a 3-year warranty. The...
Seved Help Save & Exit A company estimates that warranty expense will be 2% of sales....
Seved Help Save & Exit A company estimates that warranty expense will be 2% of sales. The company's sales for the current period are $170,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $3.400 credit Sales $3,400. Debit Warranty Expense $3,400 credit Estimated Warranty Liability $3,400 Debit Estimated Warranty Liability $3,400 credt Warranty Expense $8,400. Debit Estimated Warranty Liability $3,400 credit Cash $3,400 No entry is recorded until the items are returned for...
Jonus Bike Inc., manufactures and sells high-end bicycles. Each bicycle that the company sells comes with...
Jonus Bike Inc., manufactures and sells high-end bicycles. Each bicycle that the company sells comes with a 5 year unlimited warranty. Based on past experience, Jonus' accountant estimates that for every $4,000 worth of sales, Jonus will have to pay out $61 in warranty costs. Do not enter dollar signs or commas in the input boxes. a) This year, Jonus Bike Inc. had sales of $1,320,000. First, calculate the estimated warranty costs based on the accountant's analysis. Date Account Title...
A company sells computers that come with a 3-year warranty. The company estimates that Warranty expense...
A company sells computers that come with a 3-year warranty. The company estimates that Warranty expense is, on average, 3% of sales. During the current year, total sales were $1991601. The warranty liability at the beginning and end of the year was $41259 and $66672, respectively. What is the dollar value of warranty repairs performed during the year? Select one: o a. $25413 O b. $48183 O c. $34335 O d. $85161 Check
Recording and Reporting Warranties During 2020, Ward Company introduced a new product carrying a three-year warranty...
Recording and Reporting Warranties During 2020, Ward Company introduced a new product carrying a three-year warranty against defects, which has a separate purchase price. The company collected $20,000, and $35,000 for this extended warranty feature in the years 2020 and 2021, respectively. The company uses straight-line recognition of warranty revenue. The estimated warranty costs are 2% of sales within the first 12 months following the sale and 44 in the second 12 months following the sale. For simplification, assume that...
Recording Assurance-Type Warranty Liability Finisher Inc. sells merchandise for $450,000 in 2020 that includes a three-year...
Recording Assurance-Type Warranty Liability Finisher Inc. sells merchandise for $450,000 in 2020 that includes a three-year limited warranty, Warranty costs are estimated to be 19 of sales. The company incurred actual costs of $1,440 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020. Account Name Cr. . 0 0 D 0 b. 0 0 E pepe cen...
In 2017, Scranton, Inc. sold 2,000 carpets for $50 each. The carpets carry a two-year warranty...
In 2017, Scranton, Inc. sold 2,000 carpets for $50 each. The carpets carry a two-year warranty for repairs. Scranton estimates that repair costs will average 3% of the total selling price. What amount would be recorded in the warranty liability account as a result of selling the carpets during 2017? a.$1,500 b.$50 c.$3,000 d.No liability should be recorded until the carpets are returned for repairs.
8) 8) A company sells its product subject to a warranty that covers the cost of...
8) 8) A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale, Warranty costs are estimated to be 4.5% of sales for parts, and 1.5% of sales for labour. During the month of June, the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work. Sales for June amounted to $450,000. (1) What...
8) 8) A company sells its product subject to a warranty that covers the cost of...
8) 8) A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale. Warranty costs are estimated to be 4.5% of sales for parts, and 1.5% of sales for labour. During the month of June, the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work. Sales for June amounted to $450,000. (1) What...
8) 8) A company sells its product subject to a warranty that covers the cost of...
8) 8) A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale. Warranty costs are estimated to be 4.5% of sales for parts, and 1.5% of sales for labour. During the month of June, the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work. Sales for June amounted to $450,000. (1) What...
ted Liabilities Help Save & Exit Required information Problem 11-4A Warranty expense and liability estimation LO...
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....
Seved Help Save & Exit A company estimates that warranty expense will be 2% of sales. The company's sales for the current period are $170,000. The current period's entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $3.400 credit Sales $3,400. Debit Warranty Expense $3,400 credit Estimated Warranty Liability $3,400 Debit Estimated Warranty Liability $3,400 credt Warranty Expense $8,400. Debit Estimated Warranty Liability $3,400 credit Cash $3,400 No entry is recorded until the items are returned for...
Jonus Bike Inc., manufactures and sells high-end bicycles. Each bicycle that the company sells comes with a 5 year unlimited warranty. Based on past experience, Jonus' accountant estimates that for every $4,000 worth of sales, Jonus will have to pay out $61 in warranty costs. Do not enter dollar signs or commas in the input boxes. a) This year, Jonus Bike Inc. had sales of $1,320,000. First, calculate the estimated warranty costs based on the accountant's analysis. Date Account Title...
A company sells computers that come with a 3-year warranty. The company estimates that Warranty expense is, on average, 3% of sales. During the current year, total sales were $1991601. The warranty liability at the beginning and end of the year was $41259 and $66672, respectively. What is the dollar value of warranty repairs performed during the year? Select one: o a. $25413 O b. $48183 O c. $34335 O d. $85161 Check
Recording and Reporting Warranties During 2020, Ward Company introduced a new product carrying a three-year warranty against defects, which has a separate purchase price. The company collected $20,000, and $35,000 for this extended warranty feature in the years 2020 and 2021, respectively. The company uses straight-line recognition of warranty revenue. The estimated warranty costs are 2% of sales within the first 12 months following the sale and 44 in the second 12 months following the sale. For simplification, assume that...
Recording Assurance-Type Warranty Liability Finisher Inc. sells merchandise for $450,000 in 2020 that includes a three-year limited warranty, Warranty costs are estimated to be 19 of sales. The company incurred actual costs of $1,440 in 2020 related to the warranties. a. Record the warranty accrual at the time of sale in 2020. b. Record the adjustment to the warranty accrual for actual warranty costs in 2020. Account Name Cr. . 0 0 D 0 b. 0 0 E pepe cen...
8) 8) A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale, Warranty costs are estimated to be 4.5% of sales for parts, and 1.5% of sales for labour. During the month of June, the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work. Sales for June amounted to $450,000. (1) What...
8) 8) A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale. Warranty costs are estimated to be 4.5% of sales for parts, and 1.5% of sales for labour. During the month of June, the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work. Sales for June amounted to $450,000. (1) What...
8) 8) A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale. Warranty costs are estimated to be 4.5% of sales for parts, and 1.5% of sales for labour. During the month of June, the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work. Sales for June amounted to $450,000. (1) What...
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....
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