What is the warranty expense for the current year? What is the warranty liability at the beginning of the year?
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Q: PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are…
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Q: On May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's…
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A: Balance of warranty expense = Estimated warranty liability - Cash expenditure
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Q: GPS Company estimated annual warranty expense at 8% of net sales. The following data relate to the…
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Q: PHE, Inc.estimates warranty expense at 2% of sales. Sales during the year were $4 million and…
A: A warranty liability is a liability account in which a company records the amount of the repair or…
Q: Carpenter Inc. estimates warranty expense at 3% of sales. Sales during the year were $8 million and…
A: Estimated warranty expenses are calculated on the basis of estimation of percentage on sales and…
Q: The company had sales of $3,400,000. The estimated % that will be returned under the warranty is…
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Q: Villa company estimates its annual warranty expense at 8% of net sales. The following data relate…
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Use the information for the next two (2) questions. Bold Company estimated annual warranty expense at 2% of annual net sales. The net sales for the current year amounted to P4,000,000. At the end of the current year, the warranty liability was P60,000 and the warranty payments during the current year totaled P50,000.
What is the warranty expense for the current year?
What is the warranty liability at the beginning of the year?
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- At the beginning of the year, Laurier Inc. had a balance in its warranty liability account of $ 50000. During the year Laurier Inc. paid warranty costs of $ 62000. At the end of the year, Laurier Inc. estimated that its future warranty liability was $ 60000. How much is Laurier Inc.'s warranty expense for the year? Your Answer:White Hat Digital, Inc. starts the year with a credit balance of $3,500 in its Estimated Warranty Payable account. During the year, there were $224,000 in sales and $4,800 in warranty repair payments. White Hat Digital estimates warranty expense at 2% of sales. At the end of the year, what is the balance in the Estimated Warranty Payable account?PHAGE COMPANY estimates its annual warranty expense at 4% of net sales. The following balances are given by EUSTASS: Net sales – 1,500,000; warranty liability – balance 12/31/2021 debit (before adjustment) of 10,000; warranty liability - balance 12/31/2021 credit (after adjustment) of 50,000. Which of the following entries was made to record the 2021 estimated warranty expense? a. Warranty expense 60,000 10,000 Retained earnings Warranty liability 50,000 b. Warranty expense Retained earnings Warranty liability 50,000 10,000 60,000 c. Warranty expense Warranty liability 40,000 40,000 d. Warranty expense Warranty liability 60,000 60,000
- A company estimates that warranty expense will be 3% of sales. The company's sales for the current period are $262,000. The current period's entry to record the warranty expense isSiomai Company estimates its annual warranty expense as 2% of annual net sales. The following data relate to calendar year 2020:• Net sales- P3,200,000• Warranty liability (debit balance before adjustment) - P10,000• Warranty liability (credit balance after adjustment)- P54,000. Which of the following entries was made to record the 2020 estimated warranty expense? A. DR: Warranty Expense- P54,000 and Retained Earnings- P10,000; CR: Estimated Warranty Liabilities- P64,000 B. DR: Warranty Expense- P64,000; CR: Retained Earnings- P10,000 and Estimated Warranty Liabilities- P54,000 C. DR: Warranty Expense- P44,000; CR: Estimated Warranty Liabilities- P44,000 D. DR: Warranty Expense 64,000; CR: Estimated Warranty Liabilities- P64,00027. GPS Company estimated annual warranty expense at 8% of net sales. The following data relate to the current year: Warranty liability, January 1: before adjustment - 100,000 debit. After adjustment - 540,000 credit. What is the amount of net sales for the current year? * a. 8,000,000 b. 6,750,000 c. 5,500,000 d. 1,250,000
- On May 31, Baker Co. issued an $35,679, 8%, 120-day note payable to Samunck Co. Assume Baker's fiscal year ends on June 30. Assume a 360- day year for your calculations. a) What is the interest EXPENSE recognized by Baker in the current fiscal year? b) What is the maturity value of the note? c) What is the maturity date of the note?1. What is the warranty expense for the current year a. 70,000 c. 80,000 b. 50,000 d. 60,000 2. What is the warranty liability at year end? a. 10,000 c. 80,000 b. 70,000 d. 90,000Carpet Company had a balance of P800,000 in the warranty liability account on December 31, 2020. The warranty expenditures totaled P2,500,000 for 2021. The warranty expense is calculated at 6% of sales. Sales amounted to P40,000,000 for 2021. What was the balance in the warranty liability account on December 31, 2021?
- On July 1, Year 1, the Barley Company loaned $50,000 to the Jackson Co. The note has a stated interest rate of 10% and will mature on June 30, Year 2. All payments for principal and interest will be received at maturity. How much interest revenue will Barley report on its income statement for the year ended December 31, Year 1?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 expenseVilla company estimates its annual warranty expense at 8% of net sales. The following data relate to calendar year 2019: Net sales ? Warranty liability, Dec. 31, 2019 Before adjustment 100,000 debit After adjustment 540,000 credit What is the amount of net sales?