Accrued Product WarrantyLachgar Industries disclosed estimated product warranty payable for comparative years as follows:(in millions)Current estimated product warranty payableNoncurrent estimated product warranty payableTotalYear 2Feedback$14,9039,065$23,968XPresume that Lachgar's sales were $194,201 million in Year 2 and that the total paid on warranty claims during Year 2 was $15,364 million.▼ Check My WorkReview the need for a classified balance sheet.Year 1a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash demandsbusiness relative to the quick current assets and other longer-term demands$14,2897,989$22,278b. Provide the journal entry for the Year 2 product warranty expense. If an amount box does not require an entry, leave it blank.Product Warranty ExpenseProduct Warranty PayableXon the

The contrast between short-term and long-term liabilities is significant because it sheds light on…

Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: (in millions) Current estimated product warranty payable Noncurrent estimated product warranty payable Total Year 2 $14,903 9,065 Year 1 $14,289 7,989 $23,968 $22,278

Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: (in millions) Current estimated product warranty payable Noncurrent estimated product warranty payable Total Year 2 $14,903 9,065 Year 1 $14,289 7,989 $23,968 $22,278

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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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 expense
Smith Electic (SE) owed Estimated Warranty Payable of $1,100 at the end of 2023. During 2024, SE made sales of $100,000 and expects product warranties to cost the company 5% of the sales. During 2024, SE paid $2,600 for warranties. What is SE's Estimated Warranty Payable at the end of 2024? OA. $2,600 OB. $5,000 O C. $6,100 OD. $3,500
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Accrued Product Warranty Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: (in millions) Current estimated product warranty payable Noncurrent estimated product warranty payable Year 2 $16,211 9,860 $26,071 Year 1 $15,542 8,690 $24,232 Total Presume that Lachgar's sales were $211,240 million in Year 2. Assume that the total paid on warranty claims during Year 2 was $16,712 million. a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash on the business relative to the quick current assets and other longer-term b. Provide the journal entry for the Year 2 product warranty expense. c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?
118. Subject :- Accounting
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