Don't use ai, it will give you wrong answer Accounting Questions 10 MarksQuestion: 1Outback Camera Co. was organized to sell a single product that carries a 60-day warranty against defects. Engineeringestimates indicate that 5% of the units sold will prove defective and require an average repair cost of $40 per unit. DuringOutback's first month of operations, total sales were 400 units; by the end of the month, 6 defective units had been repaired.The liability for product warranties at month-end should be $a. $370b. $930c. $680d. $445Question: 2Adam Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were$143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assetsincreased by $21,000.What were Adam's total liabilities at the end of the year?a. $101,000b. $145,000c. $195,000d. $246,000

Question 1Estimated defective units= 5% of units Sold= 400 Units x 5%= 20 UnitsThe Liablity for…

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EBK CFIN

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ISBN:9781337671743

Author:BESLEY

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Chapter15: Managing Short-term Assets

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QUESTION 4 Techno Smart was organized to sell a single product for $2,400 per unit, including a 60-day warranty against defects. Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $200 per unit. During the first month of operations, total sales were $768,000. Nine units sold in the first month were found defective and repaired that month. The accrued liability for product warranties at month-end should be: OA. $3,200 OB. $1,800 OC. $4,600 D. $1,400
3. Jansen Company sells a product for $400 per unit, which includes a 30-day warranty against product defects. Experience indicates that four percent of the units sold will prove defective, requiring an average repair cost of $50 per unit. During the first month of business, product sales were $320,000, and 20 of the units sold were found to be defective and repaired during the month. What is the accrued liability for product warranties at month-end? a $1,000 b. $600 c. $1,600 d. $2,000
Instructions Chart of Accounts General Journal Instructions X Ecco Company sold $145,000 of Kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 9% of the sales price. On October 15, a customer required a $100 part replacement, plus $86 labor under the warranty. Required: Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work Refer to the Chart of Accounts for exact wording of account titles
PROBLEM 17: You are engaged to audit the December 31, 2012, financial statements of LIZA COMPANY, a manufacturer of household appliances. Your audit disclosed the following situations. a. In June 2012, the company began producing and selling a new line of dishwasher. By the end of the year, it had sold 120,000 to various dealers for P15,000 each. The product was sold under a l-year warranty, and the company estimates warranty costs to be P750 per dishwasher. Liza had paid out P30 million in warranty expenses as of December 31, 2012, which also the amount shown as warranty expense in its income statement for the current year. b. In response to your letter of audit inquiry, Liza's lawyer informed you that the company is involved in a lawsuit for violation environmental laws regulating hazardous waste. Although the litigation is pending, Liza's lawyer is certain that Liza will most probably have to pay cleanup costs and fines of P5,500,000. Liza neither accrued nor disclosed this loss in…
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Practice Question During year 1, Gum Co. introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to sales are 2% within twelve months following the sale and 4% in the second twelve months following the sale. Sales and actual warranty expenditures for the years ended December 31, year 1 and year 2, are as follows: Actual warranty expenditures $2,250 7,500 $9,750 Year 1 Year 2 Sales $150,000 250,000 $400,000 AICPA.920535FAR What amount should Gum report as estimated warranty liability in its December 31, year 2 balance sheet?
Ecco Company sold $136,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under the warranty is estimated at 6% of the sales price. On October 15, a customer required a $100 part replacement, plus $85 labor under the warranty. a. Provide the journal entry for the estimated expense on September 30. If an amount box does not require an entry, leave it blank. b. Provide the journal entry for the October 15 warranty work. If an amount box does not require an entry, leave it blank.
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Problem 29 Cabanes Factors provides financing to other companies by purchasing their accounts receivable on a non-recourse basis. Cabanes charges a commission to its clients of 15% of all receivables factored. In addition, Cabanes withholds 10% of receivables factored for protection against sales returns or adjustments. Cabanes credits the 10% withheld to Client Retainer and makes payments to clients at the end of each month so that the balance in the retainer is equal to 10% of unpaid receivables at the end of the month. Cabanes recognizes its 15% commissions as revenue at the time the receivables are factored. Also, experience has led Cabanes to establish allowance for bad debts of 4% of all receivables purchased. On January 2, 2021, Cabanes purchased receivables from Cabana Company totaling P3,000,000. Cabana has previously established an allowance for bad debts for these receivables of P100,000. By January 31, Cabanes had collected P2,500,000 on these receivables.…
Question Content Area Estimated Warranty Liability Yummy Co. sold $199,000 of consumer electronics during July under a six-month warranty. The cost to repair defects under the warranty is estimated at 7% of the sales price. On November 11, a customer was given $419 cash under terms of the warranty. Question Content Area Required: a. Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. July 31 - Select - - Select - - Select - - Select - Question Content Area b. Provide the journal entry for the November 11 cash payment. If an amount box does not require an entry, leave it blank. Nov. 11 - Select - - Select - - Select - - Select -
Estimated Warranty Liability Cook-Rite Co. sold $512,000 of equipment during January under a two-year warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On August 15, a customer required a $293 part replacement, plus $224 of labor under the warranty. Required: (a) Provide the journal entry for the estimated warranty expense on January 31 for January sales. accounts payable/cash/product warranty expense/product warranty payable/wages payable Jan. 31 (b) Provide the journal entry for the August 15 warranty work. If an amount box does not require an entry, leave it blank. accounts payable/cash/product warranty expense/product warranty payable/product warranty expense/supplies Aug. 15

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