Hitzu Co. sold a copier costing $4,500 with a two-year parts warranty to a customer on...
Hitzu Co. sold a copier costing $4,500 with a two-year parts warranty to a customer on August 16, 2017, for $9,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2018, the copier requires on-site repairs that are completed the same day. The repairs cost $98 for materials taken from the repair parts inventory. These are the only repairs required in 2018 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 5% of dollar sales. It records warranty expense with an adjusting entry at the end of each year. 1. How much warranty expense does the company report in 2017 for this copier? 2. How much is the estimated warranty liability for this copier as of December 31, 2017? 3. How much warranty expense does the company report in 2018 for this copier? 4. How much is the estimated warranty liability for this copier as of December 31, 2018? 5. Prepare journal entries to record (a) the copier’s sale; (b) the adjustment on December 31, 2017, to recognize the warranty expense; and (c) the repairs that occur in November 2018.
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Hitzu Co. sold a copier costing $4,500 with a two-year parts
warranty to a customer on...
Hitzu Co. sold a copier costing $4,500 with a two-year parts warranty to a customer on...
Hitzu Co. sold a copier costing $4,500 with a two-year parts
warranty to a customer on August 16, 2017, for $9,000 cash. Hitzu
uses the perpetual inventory system. On November 22, 2018, the
copier requires on-site repairs that are completed the same day.
The repairs cost $131 for materials taken from the repair parts
inventory. These are the only repairs required in 2018 for this
copier. Based on experience, Hitzu expects to incur warranty costs
equal to 4% of dollar...
Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty...
Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $109 for materials taken from the repair parts inventory. These are the only repairs...
Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty...
Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $130 for materials taken from the repair parts inventory. These are the only repairs...
Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier...
Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copier requires on-site repairs that are completed the same day. The repairs cost $118 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on experience,...
Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty...
Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash
with a two-year parts warranty to a customer on August 16 of Year
1. Hitzu expects warranty costs to be 5% of dollar sales. It
records warranty expense with an adjusting entry on December 31. On
January 5 of Year 2, the copier requires on-site repairs that are
completed the same day. The repairs cost $137 for materials taken
from the repair parts inventory. These are the only repairs...
Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier...
Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier costing $5,500 with a two year parts warranty to a customer on August 16, 2018, for $11,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copler requires on-site repairs that are completed the same day. The repairs cost $124 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on...
Jay Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on...
Jay Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 19, 2009, for $9,400 cash. Jay uses the perpetual inventory system. On November 22, 2010, the copier requires on-site repairs that are compl The repairs cost $125 for materials taken from the Repair Parts Inventory. These are the only repairs required in 2010 for this copier. Based on experience, Jay expects to incur warranty costs equal to 3% of dollar sales. entry at...
Hitzu Company sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31.
Hitzu Company sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $209 for materials taken from the parts inventory. These are the only repairs required...
i'm not sure where i went wrongHitzu Co. sold a copier (that costs $4,800) for...
Hitzu Co. sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a customer on August 16 of Year 1. Hitzu expects warranty costs to be 4% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $209 for materials taken from the repair parts inventory. These are the only repairs...
View transaction list 1 Record the sale of a copier for $9,000 cash. 2 Record the cost of goods sold of $4,500. 3 Recor...
View transaction list 1 Record the sale of a copier for $9,000 cash. 2 Record the cost of goods sold of $4,500. 3 Record the estimated warranty expense at 4% of the sales. 4 Credit On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $102 for materials taken from the repair parts inventory. Record the cost of the repair. Note : = journal entry has been entered Record entry...
Hitzu Co. sold a copier costing $4,500 with a two-year parts
warranty to a customer on August 16, 2017, for $9,000 cash. Hitzu
uses the perpetual inventory system. On November 22, 2018, the
copier requires on-site repairs that are completed the same day.
The repairs cost $131 for materials taken from the repair parts
inventory. These are the only repairs required in 2018 for this
copier. Based on experience, Hitzu expects to incur warranty costs
equal to 4% of dollar...
Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copier requires on-site repairs that are completed the same day. The repairs cost $118 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on experience,...
Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash
with a two-year parts warranty to a customer on August 16 of Year
1. Hitzu expects warranty costs to be 5% of dollar sales. It
records warranty expense with an adjusting entry on December 31. On
January 5 of Year 2, the copier requires on-site repairs that are
completed the same day. The repairs cost $137 for materials taken
from the repair parts inventory. These are the only repairs...
Exercise 9-10 Warranty expense and liability computations and entries LO P4 Hitzu Co. sold a copier costing $5,500 with a two year parts warranty to a customer on August 16, 2018, for $11,000 cash. Hitzu uses the perpetual inventory system. On November 22, 2019, the copler requires on-site repairs that are completed the same day. The repairs cost $124 for materials taken from the repair parts inventory. These are the only repairs required in 2019 for this copier. Based on...
Jay Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 19, 2009, for $9,400 cash. Jay uses the perpetual inventory system. On November 22, 2010, the copier requires on-site repairs that are compl The repairs cost $125 for materials taken from the Repair Parts Inventory. These are the only repairs required in 2010 for this copier. Based on experience, Jay expects to incur warranty costs equal to 3% of dollar sales. entry at...
View transaction list 1 Record the sale of a copier for $9,000 cash. 2 Record the cost of goods sold of $4,500. 3 Record the estimated warranty expense at 4% of the sales. 4 Credit On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $102 for materials taken from the repair parts inventory. Record the cost of the repair. Note : = journal entry has been entered Record entry...
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