Please do not give solution in image format ? Ping Company began operations on May 1, 2016, and experienced the followingevents during the year:1.2.3.4.5.$800 debit$ 800 creditPurchased $160,000 of merchandise inventory for cash.Sold all the merchandise for $240,000 cash and guaranteed themerchandise sold to be free from defects for one year followingthe date of sale.After Ping Company makes the necessary adjusting and closing entries at the endof 2016, what is the ending balance in its Warranties Payable account?$2,400 debit$2,400 creditPaid $50,000 cash for salaries expense.Estimated future warranty liability of $2,400 ( 1% of sales).Paid $1,600 cash to repair defective merchandise returned by acustomer.

The balance sheet represents the Financial position of the business with assets and liabilities on a…

Ping Company began operations on May 1, 2016, and experienced the following events during the year: 1. 2. 3. 4. 5. Purchased $160,000 of merchandise inventory for cash. Sold all the merchandise for $240,000 cash and guaranteed the merchandise sold to be free from defects for one year following the date of sale. $ 800 debit $ 800 credit $2,400 debit $2,400 credit Paid $50,000 cash for salaries expense. Estimated future warranty liability of $2,400 (1% of sales). Paid $1,600 cash to repair defective merchandise returned by a customer. After Ping Company makes the necessary adjusting and closing entries at the end of 2016, what is the ending balance in its Warranties Payable account?

Ping Company began operations on May 1, 2016, and experienced the following events during the year: 1. 2. 3. 4. 5. Purchased $160,000 of merchandise inventory for cash. Sold all the merchandise for $240,000 cash and guaranteed the merchandise sold to be free from defects for one year following the date of sale. $ 800 debit $ 800 credit $2,400 debit $2,400 credit Paid $50,000 cash for salaries expense. Estimated future warranty liability of $2,400 (1% of sales). Paid $1,600 cash to repair defective merchandise returned by a customer. After Ping Company makes the necessary adjusting and closing entries at the end of 2016, what is the ending balance in its Warranties Payable account?

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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