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TB Construction Ltd. sold on account units of its product with a one-year assurance warranty guarantee....
On January 1, 2020, Oriole Ltd. sold on account 1,400 units of its product for a...
On January 1, 2020, Oriole Ltd. sold on account 1,400 units of its product for a total price of $567,000 with a warranty guarantee that the products were free of any defects. The products have a one-year assurance-type warranty and Oriole estimates that the cost will be $23,800. The cost of the units is $473,000. In addition, the company sold extended warranties related to 600 units for a one-year period beyond the one-year assurance period at a cost of $16,500....
On January 1, 2020, Ivanhoe Ltd. sold on account 1,000 units of its product for a...
On January 1, 2020, Ivanhoe Ltd. sold on account 1,000 units of
its product for a total price of $571,000 with a warranty guarantee
that the products were free of any defects. The products have a
one-year assurance-type warranty and Ivanhoe estimates that the
cost will be $26,200. The cost of the units is $471,000. In
addition, the company sold extended warranties related to 600 units
for a one-year period beyond the one-year assurance period at a
cost of $16,700....
On January 1, 2020, Ivanhoe Ltd. sold on account 1,200 units of its product for a...
On January 1, 2020, Ivanhoe Ltd. sold on account 1,200 units of its product for a total price of $567,0000 and a cost of $489,000. The products have a one- year assurance-type warranty and Ivanhoe estimates that the cost will be $22,000. By the company's year-end December 31, 2020, actual warranty costs related to the products sold was $17,200, paid in cash. Prepare all appropriate journal entries including the sale of merchandise. (Credit account titles are automatically indented when 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...
Marin Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to...
Marin Inc. sells portable computer equipment with a two-year
warranty contract that requires the corporation to replace
defective parts and provide the necessary repair labour. During
2020, the corporation sells for cash 380 computers at a unit price
of $2,550. Ignore any cost of goods sold. Based on experience, the
two-year warranty costs are estimated to be $166 for parts and $189
for labour per unit. (For simplicity, assume that all sales
occurred on December 31, 2020.) The warranty is...
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%. 1.-3. Record the necessary entries in the Journal Entry Worksheet 1. Record the...
Marin Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to...
Marin Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to replace defective parts and provide the necessary repair labour. During 2020, the corporation sells for cash 382 computers at a unit price of $2,380. Ignore any cost of goods sold. Based on experience, the two-year warranty costs are estimated to be $157 for parts and $190 for labour per unit. (For simplicity, assume that all sales occurred on December 31, 2020) The warranty is...
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...
Computers Galore Ltd. sells computers, computer accessories, and software. On its computer sales, the company provides...
Computers Galore Ltd. sells computers, computer accessories, and software. On its computer sales, the company provides a one-month warranty that is included in the cost of the computer. Claims under the warranties vary from replacing defective items to providing customers with refunds if they choose. During 2020, the estimated costs related to the one-month warranties was $39,600, of which 536,500 had been incurred before year end ($29,700 for replacement items and $6,800 in refunds). For an additional charge of $100,...
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...
On January 1, 2020, Oriole Ltd. sold on account 1,400 units of its product for a total price of $567,000 with a warranty guarantee that the products were free of any defects. The products have a one-year assurance-type warranty and Oriole estimates that the cost will be $23,800. The cost of the units is $473,000. In addition, the company sold extended warranties related to 600 units for a one-year period beyond the one-year assurance period at a cost of $16,500....
On January 1, 2020, Ivanhoe Ltd. sold on account 1,000 units of
its product for a total price of $571,000 with a warranty guarantee
that the products were free of any defects. The products have a
one-year assurance-type warranty and Ivanhoe estimates that the
cost will be $26,200. The cost of the units is $471,000. In
addition, the company sold extended warranties related to 600 units
for a one-year period beyond the one-year assurance period at a
cost of $16,700....
On January 1, 2020, Ivanhoe Ltd. sold on account 1,200 units of its product for a total price of $567,0000 and a cost of $489,000. The products have a one- year assurance-type warranty and Ivanhoe estimates that the cost will be $22,000. By the company's year-end December 31, 2020, actual warranty costs related to the products sold was $17,200, paid in cash. Prepare all appropriate journal entries including the sale of merchandise. (Credit account titles are automatically indented when 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...
Marin Inc. sells portable computer equipment with a two-year
warranty contract that requires the corporation to replace
defective parts and provide the necessary repair labour. During
2020, the corporation sells for cash 380 computers at a unit price
of $2,550. Ignore any cost of goods sold. Based on experience, the
two-year warranty costs are estimated to be $166 for parts and $189
for labour per unit. (For simplicity, assume that all sales
occurred on December 31, 2020.) The warranty is...
Marin Inc. sells portable computer equipment with a two-year warranty contract that requires the corporation to replace defective parts and provide the necessary repair labour. During 2020, the corporation sells for cash 382 computers at a unit price of $2,380. Ignore any cost of goods sold. Based on experience, the two-year warranty costs are estimated to be $157 for parts and $190 for labour per unit. (For simplicity, assume that all sales occurred on December 31, 2020) The warranty is...
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...
Computers Galore Ltd. sells computers, computer accessories, and software. On its computer sales, the company provides a one-month warranty that is included in the cost of the computer. Claims under the warranties vary from replacing defective items to providing customers with refunds if they choose. During 2020, the estimated costs related to the one-month warranties was $39,600, of which 536,500 had been incurred before year end ($29,700 for replacement items and $6,800 in refunds). For an additional charge of $100,...
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...
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