entry to record the warranty liability

Q: On 30 June 2009, M Ltd estimates that it will incur warranty costs of $150 000 in the next financial…

A: Solution Concept Warranty expense and liability               The warrantty liability is the…

Q: Required: 1-a Prepare the year-end entries for any amounts that should be recorded as a result of…

A: The liability that may or may not have the potential to take place due to unpredictable future event…

Q: During Year 1, its first year of operations, Benitez Company reported sales of $580,000. At the end…

A: Working :-  1) Calculation of warranty expense for year 1 :- Sales * estimated warranty obligation…

Q: Haeir Co. sells washing machines that carry a three-year warranty against manufacturer's defects.…

A: calculation warranty expenses and warranty liabilities are as follows

Q: Urban Inc. has sales of $45,000 during January and a 90 day warranty on all products sold. It is…

A: Warranty is a selling term provided by the seller to the buyer to repair or replace the goods sold…

Q: What would be the journal entry to record the estimated liability for warranty on Dec. 31? * a. A…

A: Warranty is a form of assurance that is being given to the buyer that in case product will have any…

Q: An entity normally provides 4% warranty on its products. The provision in the first quarter was for…

A: Warranty expenses is a form of assurance being provided by seller to the buyer that in case product…

Q: The Price is Right manufactures electronic systems. The company provides a one-year warranty for all…

A: The warranty Expenses are estimated on the basis of percentage of the sales of current period,…

Q: A company sold 122 bikes at $180 each. The bikes carry a 3-year warranty for defects. The company…

A: The Warranty expenses are the estimated cost of the repairs, replacement and maintenance of the…

Q: Blue Corp sells extended 5-year warranty for $60 per product. On Jan 1, 2020, Blue sold 100 extended…

A: Warranty revenue means the income earned by an entity from selling warranties or service contracts…

Q: XYZ Computers manufactures and sells moblile tokens and radio token systems which include a 180 day…

A: Journal entries:   Journal entry records the financial transactions of a business in a journal book.…

Q: On September 1, Year 1, Carolina Electronics Company has 1,150 streaming devices ready for sale. On…

A: The objective of the question is to prepare the journal entries for the transactions of Carolina…

Q: Yummy sold $656,000 of consumer electronics during July under a one-year warranty. The cost to…

A: Contingent liability may or may not arise on the occurrence of future events. Warranty liability is…

Q: During its first year of operations Keene Limited had sales of $76,500. The company offers a 2- year…

A: Warranty liability will be reported on  liabilities section of balancesheet.Warranty expense = Sales…

Q: During Year 1, Ward Company introduced a new product carrying a two-year warranty against defects,…

A: Working :-  1) Calculation of accrued warranty expense for year 1 :-  (Sales * 2% for 12 months) +…

Q: Pink Pty Ltd. sold $110,000 of cosmetic products during July under a three-month warranty. The cost…

A: Estimated warranty expenses = $110,000 x 2 5% = $2,750 $140 is not estimated warranty expense, it is…

Q: At the beginning of the 2021, Titanic Corp. sold 50 units of a merchandise for the year for a total…

A: the total sales price of P3,000,000 warranty cost  P55,000  80% of the sales would come back for…

Q: The beginning warranty liability was $25,000. Sales of $5,000,000 were made, and 1% of sales is the…

A: Estimated warranty cost = 1% of sales  = $5,000,000 x 1% = $50,000

Q: Matthews Corporation warrants its products for two years. The estimated product warranty is 5% of…

A: Journalizing is the process followed by businesses in recording their transactions in an orderly…

Q: Relay Company estimated that annual warranty expense at 2% of annual net sales. The net sales for…

A: Introduction: Warranty is a contingent liability that the organization records in its books of…

Q: Kimber Sales offers warranties on all their electronic goods. Warranty expense is estimated at 3.5%…

A: Journal entries are the entries to be recorded in the general journal of the company's books for all…

Q: Account Name Required a. Record the entries in Year 1 to (1) record actual cash warranty costs and…

A: The warranty expense is calculated on the basis of previous years' experiences. It is estimated at…

Q: Linstrum Company received a 60-day, 9% note for $56,000, dated July 23, from a customer on account.…

A: Note: We’ll answer the first two questions since the exact one wasn’t specified. Please submit a new…

Q: During Year 2, Going-Going-Gone sold 100 hot air balloons for $4,000 each. The balloons carry a…

A: Estimated repair cost = Total ales x 4% = (100 x $4,000) x 4% = $16,000

Q: PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are…

A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000

Q: Aviation Systems sells its products with a three-year manufacturing warranty. The company's sales…

A: It is the cost  that a business expects to or has already incurred for the repair or replacement of…

Q: atek Watch Company estimates that warranty costs will equal 2% of sales. In September, total sales…

A: Estimated warranty cost Total sales * 2% $400,000 * 2% $8000

Q: Use the information for the next two (2) questions. Bold Company estimated annual warranty expense…

A: Lets understand the basics. Warranty expense is an expense which are incurred to meet the warranty…

Q: At the beginning of the year, Laurier Inc. had a balance in its warranty liability account of $…

A: When a company sells its products, it gives a warranty for repair/replacement within a certain…

Q: Lopez Inc. reported warranty expense of P 1,900,000 for the current year. The warranty liability…

A: Introduction:- As per the company warranty policy, companies may promises customers to repair or…

Q: On 9/1, Knight's Stop would debit which account for the journal entry? O Accounts Receivable O…

A:

Q: The Price is Right manufactures electronic systems. The company provides a one-year warranty for all…

A: The warranty liability is estimated on the basis of past years experiences and the number of units…

Q: Volvo Group reported the following information in a recent year for its product warranty costs along…

A: 1. Prepare Volvo’s journal entry to record its estimated warranty liabilities (provisions) for the…

Q: E. An entity sells washing machines that carry a three-year warranty against manufacturer's defects.…

A: Introduction:- The following basic information as follows under:- An entity sells washing machines…

Q: estimated warranty liability

A: Estimated warranty liability = Sales * Estimated percentage of warranty

Q: Roy Electric (RE) owed Estimated Warranty Payable of $1,200 at the end of 2015. During 2016, RE made…

A: WARRANTY EXPENSESWarranty Expenses are computed by deducting Ending Warranty Payable from the sum of…

Q: Fantastic Co. sold $150,000 of kitchen appliances during August under a six month warranty. The cost…

A: In an accounting cycle, journal entry can be defined as the process of systematically recording all…

Q: The company had sales of $3,400,000. The estimated % that will be returned under the warranty is…

A: It refers to the assurance given by a company to another individual or organisation about particular…

Q: Puzzles Company sells merchandise with a 1-year warranty. In Year 1, sales consist will average $16…

A: Provision for warrenty expense is calculated on the estimated number repair during the year.

Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…