8. The cost of a product warranty should be included as an expense in the a.future...
8. The cost of a product warranty should be included as an expense in the
a.future period when the cost of repairing the product is paid.
b.period the cash is collected for a product sold on account.
c.future period when the product is repaired or replaced.
d.period of the sale of the product.
Homework Answers
Solution:
.The cost of a product warranty should be included as an expense in the "period of the sale of the product".
Hence option "d" is correct.
Add Answer to:
8. The cost of a product warranty should be included as an expense in the
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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...
previous information : warranty expense for november 2016=$216 warranty expense for December 2016=$648 warranty expense for...
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...
please full calculation and explanation Hated product warranty labilities LO4 e yeats CHECK FIGURES: 2. $1,750:...
please full calculation and explanation
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Thank you very much for this question! Problem 10-3A Estlmated product warranty liabilitles L04 CHECK FIGURES:...
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...
31. At the beginning of 2016, Scarlet Industries began providing a three-year warranty on its products....
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Thank you!!! CHAPTER 10 Current Liabilities Problem 10-3A Estimated product warranty llabilities LO4 CHECK FIGURES: 2....
Thank you!!!
CHAPTER 10 Current Liabilities Problem 10-3A Estimated product warranty llabilities 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 simply throws it away and mails a new one from...
At the beginning of 2018, Angel Corporation began offering a two-year warranty on its products. The...
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Problem 9-4A Warranty expense and liability estimation LO P4 On October 29, 2016, Lobo Co. began...
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...
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...
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...
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 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...
31. At the beginning of 2016, Scarlet Industries began providing a three-year warranty on its products. The warranty program was expected to cost Scarlet 2% of net sales, approximately equally over the three- year warranty period. Net sales made under warranty in 2016 were $270 million. Thirteen percent of the units sold were returned in 2016 and repaired or replaced at a cost of $2 million. This amount was debited to warranty expense as incurred. Required: Prepare the appropriate adjusting...
Thank you!!!
CHAPTER 10 Current Liabilities Problem 10-3A Estimated product warranty llabilities 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 simply throws it away and mails a new one from...
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...
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