Assume that during May, a company sold a product for $160,000 that includes a 36-month warranty....
Assume that during May, a company sold a product for $160,000 that includes a 36-month warranty. Historically, the average cost of repairs over the warranty period is 7% of the sales price. The entry to record the estimated product warranty expense would include
Homework Answers
Answer :
Estimated warranty expense =$160,000*7%
=$160,000*0.07=$11,200
Journal entry to record the warranty expense
| Date | general journal | debit | credit |
| 1 | product warranty expense | $11,200 | |
|
Estimated warranty payable (to record the estimated warranty expense) |
$11,200 |
Add Answer to:
Assume that during May, a company sold a product for $160,000
that includes a 36-month warranty....
Warranty Expenses A company sells its product subject to a warranty that covers the cost of...
Warranty Expenses A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 6% of sales. Sales for June were $450,000. During the month of June, the company performed warranty work and used $12,000 of parts to perform the warranty work. 1. Prepare the journal entry to record the warranty expense for the month of June. The company uses...
Journal entry worksheet During December, Maxum Company sold 12,000 units of a product that carries a...
Journal entry worksheet During December, Maxum Company sold 12,000 units of a product that carries a 60-day warranty. December sales for this product total $460,000. The company expects 10% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $15. Record the related adjusting entry Note: Enter debits before credits. Transaction Debit Credit General Journal Warranty expense Estimated warranty liability Record entry Clear entry View general journal
Estimated Warranty Liability Oven Roasted Co. sold $387,000 of equipment during January under a six-month warranty....
Estimated Warranty Liability Oven Roasted Co. sold $387,000 of equipment during January under a six-month warranty. The cost to repair defects under the warranty is estimated at 5.5% of the sales price. On August 15, a customer required a $250 part replacement, plus $238 of labor under the warranty. Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales. Jan. 31 Product Warranty Expense (b) Provide the journal entry for the August 15...
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...
QUESTION 4 A company sells its product subject to a warranty that covers the cost of...
QUESTION 4 A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 6% of sales. During the month of June, the company performed warranty work using $12,000 worth of parts for the warranty repairs. The total sales for June were equal to $450,000. Record the warranty expense for the month of June.
Estimated Warranty Liability Cook-Rite Co. sold $687,000 of equipment during January under a six-month warranty. The...
Estimated Warranty Liability Cook-Rite Co. sold $687,000 of equipment during January under a six-month warranty. The cost to repair defects under the warranty is estimated at 7.5% of the sales price. On August 15, a customer required a $213 part replacement, plus $186 of labor under the warranty Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31 L U C (b) Provide the journal entry for the August 15 warranty...
Estimated Warranty Liability Oven Roasted Co. Sold $192,000 of equipment during January under a ste-month warranty....
Estimated Warranty Liability Oven Roasted Co. Sold $192,000 of equipment during January under a ste-month warranty. The cost to repair defects under the warranty is estimated to of the sales price On August 15, a customer required a $241 part replacement, plus $220 of labor under the warranty. Required: (0) Provide the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an...
Estimated Warranty Liability Oven Roasted Co. Sold $192,000 of equipment during January under a ste-month warranty....
Estimated Warranty Liability Oven Roasted Co. Sold $192,000 of equipment during January under a ste-month warranty. The cost to repair defects under the warranty is estimated to of the sales price On August 15, a customer required a $241 part replacement, plus $220 of labor under the warranty. Required: (0) Provide the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an...
Warranty Expenses A company sells its product subject to a warranty that covers the cost of parts for repairs during the six months after the date of sale. Warranty costs are estimated to be 6% of sales. Sales for June were $450,000. During the month of June, the company performed warranty work and used $12,000 of parts to perform the warranty work. 1. Prepare the journal entry to record the warranty expense for the month of June. The company uses...
Journal entry worksheet During December, Maxum Company sold 12,000 units of a product that carries a 60-day warranty. December sales for this product total $460,000. The company expects 10% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $15. Record the related adjusting entry Note: Enter debits before credits. Transaction Debit Credit General Journal Warranty expense Estimated warranty liability Record entry Clear entry View general journal
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...
Estimated Warranty Liability Cook-Rite Co. sold $687,000 of equipment during January under a six-month warranty. The cost to repair defects under the warranty is estimated at 7.5% of the sales price. On August 15, a customer required a $213 part replacement, plus $186 of labor under the warranty Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31 L U C (b) Provide the journal entry for the August 15 warranty...
Estimated Warranty Liability Oven Roasted Co. Sold $192,000 of equipment during January under a ste-month warranty. The cost to repair defects under the warranty is estimated to of the sales price On August 15, a customer required a $241 part replacement, plus $220 of labor under the warranty. Required: (0) Provide the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an...
Estimated Warranty Liability Oven Roasted Co. Sold $192,000 of equipment during January under a ste-month warranty. The cost to repair defects under the warranty is estimated to of the sales price On August 15, a customer required a $241 part replacement, plus $220 of labor under the warranty. Required: (0) Provide the journal entry for the estimated warranty expense on January 31 for January sales Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an...
Most questions answered within 3 hours.
-
1. What is the present value of $400, three years in the future
if the interest...
asked 4 minutes ago -
The labor force minus the number of employed equals the number
of unemployed.
a. True
b....
asked 2 hours ago -
Determine the mass in units of grams [g] of 0.49 moles [mol]
of a new fictitious...
asked 2 hours ago -
A horizontal mass of M=5kg is on a spring and stretched to
x=0.5m when released from...
asked 3 hours ago -
26 of 50
"I have worked at the Arizona Humane Society for ten years, and
have...
asked 4 hours ago -
Compare and contrast zero based budgeting and incremental (or
base year) budgeting.
asked 4 hours ago -
4 pts 10. Which of the following hypothesis would be MOST
difficult to test experimentally? Group...
asked 4 hours ago -
A business owner makes 1,000 items a day. Each day he or she
contributes eight hours...
asked 4 hours ago -
A
circular loop in the plane of a paper lies inca0.65 T magnetic
field pointing into...
asked 4 hours ago -
A business owner is trying to decide whether to buy, rent, or
lease office space and...
asked 4 hours ago -
Thermal Storage Solar heating of a house is much more efficient
if there is a way...
asked 4 hours ago -
Considering the “fits” for group and job design dimensions,
suppose you had 12 employees with different...
asked 4 hours ago