) Analyze whether int2 should be entered as a provision on the balance sheet. 2) How to book t2?
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block 3/2018
1.Even after the stipulated warranty period has expired, a coffee machine manufacturer responds to customer complaints and repairs faulty coffee machines. For this reason, provisions of €494 thousand were made in the HGB
1) Analyze whether int2 should be entered as a provision on the balance sheet.
2) How to book t2?
Step by step
Solved in 2 steps
- Quiz: Accounting for Current Liabi... G Saved Help Save & Exit Submit Check my work Required information Cost of warranty program is probable 30s 0:00 / 2:06 XL 目 Knowledge Check 01 Maas, Incorporated, sells washers and dryers that include a maximum one-year warranty covering parts. Past experience shows that warranty expense averages about 2 percent of the selling price of each washer and dryer. Net sales totaled $400,000 during the year ending December 31. Prepare the December 31 adjusting entry for Maas by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet II F3 F4 F5 F7 F8 F10 F12 Finder LL DeX 114 & 3June 12, 2024 Provide services to customers on account for $33,800. September 17, 2024 Receive $19,000 from customers on account. December 31, 2024 March 4, 2025 May 20, 2025 July 2, 2025 October 19, 2025 December 31, 2025 Estimate that 40% of accounts receivable at the end of the year will not be received. Provide services to customers on account for $48,800. Receive $10,000 from customers for services provided in 2024. Write off the remaining amounts owed from services provided in 2024. Receive $39,000 from customers for services provided in 2025. Estimate that 40% of accounts receivable at the end of the year will not be received. Required: 1. Record transactions for each date. 2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts. 3. Calculate net accounts receivable reported in the balance sheet at the end of 2024 and 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required…QUESTION 2 Gyampat Enterprises sold goods to customers but retain the title of the goods till the receipt of money. The goods are normally sold on three months credit and title of the goods also passed to the buyers after receipt of money. Gyampat Enterprises also give warranty for three months for un-satisfactory performance. At the balance sheet date goods for which title has not been transferred and eligible for warranty are GHS 1,250,000. The markup on these goods is 25%. Past experience tells that 80% goods have no claim, 10% returned but can be sold at the original value and remaining 10% have no value at all. Calculate the amount of provision Gyampat Enterprises should be created in the financial statements?
- Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. 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 $14 and its retail selling price is $80. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 50 razors for $4,000 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 10 razors that were returned under the warranty. Sold 150 razors for $12,000 cash. December 16 December 29 December 31 January 5 January 17 January 31 Problem 11-4A (Algo) Part 1 Replaced 20 razors that were returned under the warranty. Recognized warranty expense related to December sales with an…m-Aug 28 + d.vst.idref%3DP7001016677000000000000000003B8F]!/4/2[P700101667700000000000... QAA E S4-3 Collins Woodworking accepts VISA and MasterCard at its store. Collins is charged a processing fee of 3% of the total amount of any credit card sale. Assume that Russell Knight purchases $8,000 of custom furniture and pays with a VISA card. Make the entry to record the sale to Knight. (You do not need to make the cost of goods sold entry.)A company that uses a bill facility to provide fiance for a period of two years: A. is exposed to interest-rate risk B. will not be required to make any payments until the end of the facility. C. will issue bank bills that mature in two years' time D. will initially receive the bill's face value. E. All of these.
- Required information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. 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 $14 and its retail selling price is $80. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 50 razors for $4,000 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 10 razors that were returned under the warranty. Sold 150 razors for $12,000 cash. December 16 December 29 December 31 January 5 Replaced 20 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 100…Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 [The following information applies to the questions displayed below.] On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. 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 $13 and its retail selling price is $80. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 80 razors for $6,400 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 16 razors that were returned under the warranty. December 16 Sold 240 razors for $19,200 cash. December 29 Replaced 32 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 160 razors for $12,800 cash.…
