Can you help me this During March, Avalon Electronics sold 300 smartwatches for $250 each. Eachsmartwatch had cost Avalon $120 to manufacture and comes with a one-yearwarranty. If 6% of the smartwatches typically need to be replaced over thewarranty period, and fifteen are actually replaced during March, for whatamount in March should Avalon debit Product Warranty Expense?

Step 1: Definition of Product Warranty Expense (Long Version)Product Warranty Expense refers to the…

Answered: During March, Avalon Electronics sold…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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What amount should be Accrued for estimated warranty costs for the fist month?
Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 2% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly.At the end of 2020, accounts receivable were $602,000 and the allowance account had a credit balance of $66,000. Accounts receivable activity for 2021 was as follows: Beginning balance $ 602,000 Credit sales 2,760,000 Collections (2,623,000 ) Write-offs (53,000 ) Ending balance $ 686,000 The company’s controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 0−60 days $ 440,000 5 % 61−90 days 70,000 11 91−120 days 63,000…
On October 24, you plan to purchase a$1500 computer by using one of your two credit cards. The Silver Card charges 18% interest and calculates interest based on the balance on the first day of the previous month. The Gold Card charges 18% interest and calculates interest based on the average daily balance. Both cards have a s0 balance as of October 1. The closing date is the end of the month for each card. Your plan is te make a 00 payment in November, make a500 payment in December, and pay off the remaining balance in January, All your payments will be received and posted en the 1oth of each month. No other tharges will be made on the acount. (Round your answers to the nearest cent.) (a) Based on this information, calculate the interest (in s) charged by each card for this purchase Silver Card Gold Card (b) Which card is the better deal and by how much (in $)7 The Goid Card s the better deal by s49 02
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2020, accounts receivable were $574,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2021 was as follows: Beginning balance $ 574,000 Credit sales 2,620,000 Collections (2,483,000 ) Write-offs (68,000 ) Ending balance $ 643,000 The company’s controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 0–60 days $ 430,000 4 % 61–90 days 98,000 15 91–120 days 60,000 25…
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