her accrued liabilities-warranties Pri Co. products, but competitive pressures forced management to add this fe inning of 2013. Based on an analysis of customer complaints made o years, the cost of a warranty program was estimated at 0.3% of sa 3, sales totaled $3,450,000. Actual costs of servicing products und led $9,700. quired:

her accrued liabilities-warranties Pri Co. products, but competitive pressures forced management to add this fe inning of 2013. Based on an analysis of customer complaints made o years, the cost of a warranty program was estimated at 0.3% of sa 3, sales totaled $3,450,000. Actual costs of servicing products und led $9,700. quired:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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McCleary Industries completed the following transactions during 2018: iClick the icon to view the transactions.) Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1: Made sales of $22,000, McCleary estimates that warranty expense is 2% of sales. (Record only the warranty expense.) Date Accounts Debit Credit Nov. 1 O Time Course Chat DELL position Book 80 sheets J4 in x 7 1/2 in mm x 190 mm durad for Staples, Inc
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! Required Information Saved [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 malls a new one from Merchandise Inventory to the customer. The company's cost per new razor is $16 and its retail selling price is $80. The company expects warranty costs to equal 7% of dollar sales. The following transactions occurred. November 11 Sold 60 razors for $4,800 cash. November 30 December 9 December 16 December 29 December 31 January 5 January 17 January 31 Recognized warranty expense related to November sales with an adjusting entry. Replaced 12 razors that were returned under the warranty. Sold 180 razors for $14,400 cash. Replaced 24 razors that were returned under the warranty. Recognized warranty expense related to December sales with an adjusting entry. Sold 120 razors for $9,600 cash. Replaced 29 razors…
During Year 1, its first year of operations, Benitez Co. reported sales of $360,000. At the end of Year 1, the company estimated its warranty obligation at 2% of sales. During Year 1, the company paid $4,800 cash to settle warranty claims. Which of the following statements is true? Multiple Choice Warranty expenses would decrease net earnings by $7,200 in Year 1. All of these answer choices are correct. The warranties payable account has a balance of $2,400 at the end of Year 1. Cash decreased by $4,800 as a result of the accounting events associated with warranties in Year 1.
The following facts relate to the Patton Co. postretirement benefits plan for 2015: Service cost $180,000 Discount rate 12% APBO, January 1, 2015 $1,500,000 EPBO, January 1, 2015 $2,000,000 Benefits payments to employees $115,000 The amount of postretirement expense for 2015 is a. 180,000 b. 315,000 c. 360,000 d. 430,000