4. Analyze the estimated warranty liability account toascertain whether actual warranty costs approximate theestimate. The sales and warranty repairs are made evenlyduring the year.5. Prepare journal entry to correct the estimated warrantyliability on December 31, 2021. Problem 3-1 (IAA)arepair warranty The sale price for each set is P15,000. Theaverage repair cost per set is P800.Research has shown that 20% of all sets sold are repaired inthe first year and 40% in the second year.20202021300500150,000Number of sets sold40,000Total payments'for warranty repairs

Warranty refers to the guarantee in which the manufacturer of the goods promises to replace the good…

4. Analyze the estimated warranty liability account to ascertain whether actual warranty costs approximate the estimate. The sales and warranty repairs are made evenly during the year. 5. Prepare journal entry to correct the estimated warranty liability on December 31, 2021.

4. Analyze the estimated warranty liability account to ascertain whether actual warranty costs approximate the estimate. The sales and warranty repairs are made evenly during the year. 5. Prepare journal entry to correct the estimated warranty liability on December 31, 2021.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9MC: Blake Department Store sells television sets with one-year warranties that cover repair and...

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Question

4. Analyze the estimated warranty liability account to
ascertain whether actual warranty costs approximate the
estimate. The sales and warranty repairs are made evenly
during the year.
5. Prepare journal entry to correct the estimated warranty
liability on December 31, 2021.

Problem 3-1 (IAA)
a
repair warranty The sale price for each set is P15,000. The
average repair cost per set is P800.
Research has shown that 20% of all sets sold are repaired in
the first year and 40% in the second year.
2020
2021
300
500
150,000
Number of sets sold
40,000
Total payments'for warranty repairs

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81 PROBLEMS Problem 3-1 (IAA) repair warranty The sale price for each set is P15,000. The average repair cost per set is P800. Research has shown that 20% of all sets sold are repaired in thế first year and 40% in the second year. 2020 2021 300 500 150,000 Number of sets sold 40,000 Total payments'for warranty repairs Required: 1. Prepare journal entries in connection with the warranty using the "expense as incurred" approach. 2. Prepare journał entries in connection with the warranty using the "accrual" approach. 3. Determiņe the estimated warranty liability on December 31, 2021 4. Analyze the estimated warranty liability account to ascertain whether actual warranty costs approximate the estimate. The sales and warrantý repairs are made evenly during the year. 5. Prepare journal entry to correct the estimated warranty liability on December 31, 2021. 82 Problem 3-2 (AICPA Adapted) In 2020, Dare Company bęgan selling
Answers for Numbers 4 and 5 only
Miracle company premium warranty solution
4
Socorro Company sells color television sets with a two-year repair warranty. The sale price for each set is P15,000. the average repair cost per set is P800. Research has shown that 20% of all sets sold are repaired in the first year and 40% in the second year. 2020 2021 Number of sets sold 300 500 Total payments for warranty repairs 40,000 150,000
A.P 54,000 B.P 74,000 C.P 4,000 D.P 24,000
Please do not give solution in image format thanku
15. A new product introduced by COCONUT Enterprise carries a two-year warranty against defects. The estimated warranty costs related to dollar sales are as follows: * Year of sale 3 percent Year after sale 5 percent Sales and actual warranty expenditures for the years ended December 31, 2020 and 2021, are as follows: Actual Warranty Sales P 8,000,000 10,000,000 Expenditures P 200,000 700,000 2020 2021 What amount should COCONUT report as its estimated liability as of December 31, 2021? P 40,000 P 740,000 O P 240,000 O P 540,000
15. A new product introduced by COCONUT Enterprise carries a two-year warranty against defects. The estimated warranty costs related to dollar sales are as follows: What amount should COCONUT report as its estimated liability as of December 31, 2021? a. ₱ 740,000 b. ₱ 40,000 c. ₱ 240,000 d. ₱ 540,000
what's the best answe for problem 7-5 and 7-7
22
Information on a note receivable: Face amount P800,000 Effective Interest 14% PV of P1 @14%, n= 5 0.519369 PV of ordinary annuity of 1 @14%, n=4 2.91371 PV of annuity of 1@14%, n=5 3.91371 The note is due in five equal annual installments. The first installment is due at initial recognition. What is the carrying amount of the note at initial recognition before any collection? 626,194 567,823 582,742 602,158