Roy Electric (RE) owed Estimated Warranty Payable of $1,200 at the end of 2015. During 2016, RE made sales of $110,000 and expects product warranties to cost the company 2% of the sales. During 2016, RE paid $2,700 for warranties. What is RE's Estimated Warranty Payable at the end of 2016? O A. $700 OB. $2,200 O C. $2,700 O D. $3,400

Roy Electric (RE) owed Estimated Warranty Payable of $1,200 at the end of 2015. During 2016, RE made sales of $110,000 and expects product warranties to cost the company 2% of the sales. During 2016, RE paid $2,700 for warranties. What is RE's Estimated Warranty Payable at the end of 2016? O A. $700 OB. $2,200 O C. $2,700 O D. $3,400

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
Puzzles Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 3,700 units. It is estimated that warranty repairs will average $16 per unit sold, and 40% of the repairs will be made in Year 1 and 60% in Year 2. In the income statement for Year 1, Puzzles Company should show warranty expense of a. $35,520. b. $23,680. c. $0. d. $59,200.
Concord Ltd. manufactures a line of amplifiers that carry a three-year warranty against defects. Based on experience, the estimated warranty costs related to dollar sales are as follows: first year after sale-2% of sales; second year after sale-4% of sales; and third year after sale-5% of sales. Sales and actual warranty expenditures for the first three years of business were: Sales Warranty Expenditures 2021 $750,000 $ 15,900 2022 1,010,000 46, 000 2023 1,017, 000 80,000 (a) Calculate the amount that Concord should report as warranty expense on its 2023 income statement and as a warranty liability on its December 31, 2023 SFP using the assurance - type warranty (expense - based approach). Assume that all sales are made evenly throughout each year and that warranty expenditures are also evenly spaced according to the rates above. Warranty expense Warranty liability
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On July 1, 2017, Agincourt Inc. rendered services in exchange for a 4%, 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of 1 at 12% for 8 perlods 0.40388 The present value of an ordinary annuity 4,9676 of 1 at 12% for 8 perlods Instructions By hew much amount Ihe service revue wil be credited? (Please wite your answer without commas or sign of the doliar. For example ifyour answer is SI0.000, Swrite it 10000)
Stable Enterprises had sales of $230,000 in Year 1. Stable warrants its products and estimates warranty expense to be 4% of sales. In Year 2 Stable paid $9,000 cash to settle warranty obligations. Which of the following journal entries would be required to recognize the settlement of the warranty obligations? Multiple Choice O Account Titles Warranty Expense Cash Account Titles Warranty Expense Warranty Payable Account Titles Warranty Payable Debit $9,000 Debit $9,200 Debit $9,000 Credit $9,000 Credit $9,200 Credit.
9.Please answer all the tables in their entirely