Your answer is partially correct. In 2024, Windsor Company introduces a new product that includes a two-year warranty on parts. During 2024,4,400 units are sold for $365 each. The cost of each unit was $130. The company estimates that 5% of the units will be defective and that the average warranty cost will be $70 per unit. The company has a December 31 fiscal year end and prepares adjusting entries on an annual basis. Prepare an adjusting entry at December 31, 2024, to accrue the estimated warranty cost. (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 debit entry before credit entry.) Date Account Titles Dec. 31 Warranty Expense Warranty Liability Debit 11000 Credit 11000

Your answer is partially correct. In 2024, Windsor Company introduces a new product that includes a two-year warranty on parts. During 2024,4,400 units are sold for $365 each. The cost of each unit was $130. The company estimates that 5% of the units will be defective and that the average warranty cost will be $70 per unit. The company has a December 31 fiscal year end and prepares adjusting entries on an annual basis. Prepare an adjusting entry at December 31, 2024, to accrue the estimated warranty cost. (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 debit entry before credit entry.) Date Account Titles Dec. 31 Warranty Expense Warranty Liability Debit 11000 Credit 11000

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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Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered. Required: Question 4 Calculate the present value of the $71,600 to be received on 30 June 2025.
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