Electronics4U manufactures high-end whole home electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is $200 per unit sold and reported a liability for estimated warranty costs $6.5 million at the beginning of this year. If during the current year, the company sold 50.000 units for a total of $243 million and paid warranty claims of $7,500,000 on current and prior year sales, what amount of liability would the company report on its balance sheet at the end of the current year? Show all work either through T-account or formula.
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Electronics4U manufactures high-end whole home electronic systems. The company provides a one-year warranty for all...
Bonita manufactures high-end whole home electronic systems. The company provides a one-year warranty for all products...
Bonita manufactures high-end whole home electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is $290 per unit sold and reported a liability for estimated warranty costs $10.6 million at the beginning of this year. If during the current year, the company sold 59000 units for a total of $326 million and paid warranty claims of $12090000 on current and prior year sales, what amount of liability would the company...
Jupiter Corp. provides at no extra charge a two-year warranty with one of its products, which...
Jupiter Corp. provides at no extra charge a two-year warranty with one of its products, which was first sold in 2017. In that year, Jupiter sold products for $2.5 million and spent $68,000 servicing warranty claims. At year end, Jupiter estimates that an additional $420,000 will be spent in the future to service warranty claims related to the 2017 sales. Prepare Jupiter's journal entry(ies) to record the sale of the products, the $68,000 expenditure, and the December 31 adjusting entry...
Accrued Product Warranty Harbour Company disclosed estimated product warranty payable for comparative years as follows: (in...
Accrued Product Warranty Harbour Company disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable $13,769 $13,201 Noncurrent estimated product warranty payable 8,375 7,381 $22,144 $20,582 Total Assume that Harbour's sales were $162,391 million in current Year and that the total paid on warranty claims during the current year was $14,195 million a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate...
Harbour Company disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year...
Harbour Company disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable $3,070 $2,868 Noncurrent estimated product warranty payable 4,345 4,138 Total $7,415 $7,006 Assume that Harbour Company's sales were $135,548 million in the current year and that the total paid on warranty claims during the current year was $3,100 million. Required: a. Why are short, and long-term estimated warranty liabilities separately disclosed? b. Provide the journal entry for...
Warranties Polar Company manufactures and sells Ice Machines Polar provides all customers with a two-year warranty...
Warranties Polar Company manufactures and sells Ice Machines Polar provides all customers with a two-year warranty guaranteeing to repair, free of charge, any defects reported during this time period. During the year, it sold 100,000 Ice Machines for $295 each. Analysis of past warranty records indicates that 12% of all sales will be returned for repair within the warranty period. Polar expects to incur expenditures of 16 to repair each le Machine. The account Estimated Liability for Warranties had a...
Innovative Inc. offers a one-year warranty on all products it sold. Assume that at the start...
Innovative Inc. offers a one-year warranty on all products it sold. Assume that at the start of 2016 the company’s balance sheet included an accrued warranty liability of $15.4 million, and at the end of 2016 the accrued warranty liability balance was $11.5 million. It paid $65.8 million during 2016 to repair and/or replace goods under warranty. How much warranty expense did Innovative record during 2016?
Lindy Appliance begins operations in 2021 and offers a one-year warranty on all products sold. Total...
Lindy Appliance begins operations in 2021 and offers a one-year warranty on all products sold. Total appliance sales in 2021 are $1,600,000, and Lindy estimates future warranty costs in 2022 to be 2% of current sales. Actual warranty costs in 2022 are $25,000. Also in 2022, Lindy has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in 2022 to be 1.5%. 4. What is the balance in Warranty Liability at the end of 2021...
1. Bolivia provides a warranty with all its products it sells. It estimates that it will...
1.
Bolivia provides a warranty with all its products it sells. It
estimates that it will sell 1,000,000 units of its product for the
year ended December 31, 2020, and that its total revenue for the
product will be $100,000,000. It also estimates that 60% of the
product will have no defects, 30% will have major defects, and 10%
will have minor defects. The cost of a minor defect is estimated to
be $5 for each product sold, and the...
Part (b) only Muin Company provides assurance type warranties and estimates its warranty liability at 4%...
Part (b) only
Muin Company provides assurance type warranties and estimates its warranty liability at 4% of sales. Last year (2019), the company sold 340,000 units and they expected to incur $60 of repairs for each one that is retumed. During 2020 the company incurred $777,000 in actual warranty repairs. Muin has a December 31 year end. *(a) Your answer is correct. Calculate the balance of any warranty provision the company will report relating to its 2019 sales as at...
a company provides three year warranty with their products. they expect to replace one of every...
a company provides three year warranty with their products. they expect to replace one of every ten products sold under this warranty. in 2018, they sold 1,000 products for $500 and they spend 13,200 on replacing the "damaged" products. the cost to replace a product is 400 (COGS) . prepare all journal entries during 2018 for the sale and related warranty expense (assume that 2018 was the first year that the products were sold)
Accrued Product Warranty Harbour Company disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable $13,769 $13,201 Noncurrent estimated product warranty payable 8,375 7,381 $22,144 $20,582 Total Assume that Harbour's sales were $162,391 million in current Year and that the total paid on warranty claims during the current year was $14,195 million a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate...
Harbour Company disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable $3,070 $2,868 Noncurrent estimated product warranty payable 4,345 4,138 Total $7,415 $7,006 Assume that Harbour Company's sales were $135,548 million in the current year and that the total paid on warranty claims during the current year was $3,100 million. Required: a. Why are short, and long-term estimated warranty liabilities separately disclosed? b. Provide the journal entry for...
Warranties Polar Company manufactures and sells Ice Machines Polar provides all customers with a two-year warranty guaranteeing to repair, free of charge, any defects reported during this time period. During the year, it sold 100,000 Ice Machines for $295 each. Analysis of past warranty records indicates that 12% of all sales will be returned for repair within the warranty period. Polar expects to incur expenditures of 16 to repair each le Machine. The account Estimated Liability for Warranties had a...
Lindy Appliance begins operations in 2021 and offers a one-year warranty on all products sold. Total appliance sales in 2021 are $1,600,000, and Lindy estimates future warranty costs in 2022 to be 2% of current sales. Actual warranty costs in 2022 are $25,000. Also in 2022, Lindy has additional sales of $2,400,000 and revises its estimate of warranty costs associated with sales in 2022 to be 1.5%. 4. What is the balance in Warranty Liability at the end of 2021...
1.
Bolivia provides a warranty with all its products it sells. It
estimates that it will sell 1,000,000 units of its product for the
year ended December 31, 2020, and that its total revenue for the
product will be $100,000,000. It also estimates that 60% of the
product will have no defects, 30% will have major defects, and 10%
will have minor defects. The cost of a minor defect is estimated to
be $5 for each product sold, and the...
Part (b) only
Muin Company provides assurance type warranties and estimates its warranty liability at 4% of sales. Last year (2019), the company sold 340,000 units and they expected to incur $60 of repairs for each one that is retumed. During 2020 the company incurred $777,000 in actual warranty repairs. Muin has a December 31 year end. *(a) Your answer is correct. Calculate the balance of any warranty provision the company will report relating to its 2019 sales as at...
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