if a company sold a product for $100 and it includes a 20 days warranty that has a value of $20. What would the journal entry for the month be
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Q: Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 6%…
A: The concept applied here is the accrual accounting principle.Accrual accounting recognizes expenses…
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Q: A company's sales for January are $250,000. If the company projects warranty obligations to be 5% of…
A: Formula used: Warranty liability = Sales x Warranty obligations percentage
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Q: 1. Determine the estimated warranty liability on December 31, 2022. 2. Analyze the estimated…
A: Answer: We are given First year warranty = 4% Second year warranty = 10%
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A: Estimated warranty cost = 1% of sales = $5,000,000 x 1% = $50,000
Q: Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 4%…
A: Solution:- a)Preparation of the adjusting entry required at January 31, the end of the first month…
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A: Interest on 45 days note for 30 days 115000*12%*30/360=$150
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A: Estimated warranty expenses = sales x 4% = 1500000 x 4% = 60,000
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if a company sold a product for $100 and it includes a 20 days warranty that has a value of $20. What would the
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- Help me selecting the right answer. Thank youFosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $202,000 for January. On February 7, a customer received warranty repairs requiring $140 of parts and $105 of labor. Question Content Area a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. _______ _______ ______ Question Content Area b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank. ___________ _______ _______On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What is the journal entry that should be recorded by Watson Enterprises upon signing the note?
- The company had sales of $3,400,000. The estimated % that will be returned under the warranty is 1.5%. Record the journal entry for the estimated warranty expenseOn January 15, Ross Furniture, Inc., accepts a $5,000, 180-day, 10 percent note from a customer at the time of a product sale. Prepare the Journal entry?Flint Company sells products with a 2-year warranty. Past experience indicates that 2% of the units sold will be returned during the warranty period for repairs. The average cost of repairs under warranty is estimated to be $85 per unit. During 2020, 8,450 units were sold at an average price of $400. During the year, repairs were made on 55 units at a cost of $3,600. Prepare journal entries to record the repairs made under warranty and estimated warranty expense for the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Warranty Expense (To record cost of honoring warranties) Warranty Expense Warranty Liability (To accrue estimated warranty costs) Debit 3600 Credit 3600
- Lachgar Industries warrants its products for one year. The estimated product warranty is 4% of sales. Assume that sales were $210,000 for June. In July, a customer received warranty repairs requiring $140 of parts and $95 of labor. a. Journalize the adjusting entry required at June 30, the end of the first month of the current fiscal year, to record the accrued product warranty. b. Journalize the entry to record the warranty work provided in July.On April 12 Hong co. agrees to accept a 60 day, 6% 6,900 note from indigo co to extend the due date on an overdue account. What is the journal entry the indigo co would make when it record payment of note on maturity date (use 360 days a year)On April 12 Hong co. agrees to accept a 60 day, 6% 6,900 note from indigo co to extend the due date on an overdue account. What is the journal entry the indigo co would make when it record payment of note on maturity date (use 360 days a year)
- American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 7.00%, with interest paid monthly, what is the card's EFF%?Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,392 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of Oa. $40,664 Ob. so Oc. $28,465 Od. $12,199ShadyTree Company issued a note receivable to a customer. The face value of the note was $12,000 at 4% interest for 5 months. How much interest revenue should ShadyTree recognize for the entire term of the note? $280 $480 $200 $40