Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience. Requirement 1: To determine: Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

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Answer 1

Question

Chapter 11, Problem 4APSA

To determine

Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience.

Requirement 1:

To determine:

Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

To determine

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

To determine

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

To determine

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

To determine

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

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On January 1, 2024, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $532,000 by Elmira on December 31, 2026. The effective interest rate is 8%. Note: Use appropriate factor(s) from the tables provided. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: How much sales revenue would Wright recognize on January 1, 2024, for this transaction? Prepare journal entries to record the sale of merchandise on January 1, 2024 (omit any entry that might be required for the cost of the goods sold), the December 31, 2024, interest accrual, the December 31, 2025, interest accrual, and receipt of payment of the note on December 31, 2026.

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $28,000 at the beginning of 2024. No previously written-off accounts receivable were reinstated during 2024. At 12/31/2024, gross accounts receivable totaled $466,700, and prior to recording the adjusting entry to recognize bad debts expense for 2024, the allowance for uncollectible accounts had a debit balance of 51,300. Required: Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2024. Determine the amount of accounts receivable written off during 2024. If Johnson instead used the direct write-off method, what would bad debt expense be for 2024?

Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $28,000 at the beginning of 2024. No previously written-off accounts receivable were reinstated during 2024. At 12/31/2024, gross accounts receivable totaled $466,700, and prior to recording the adjusting entry to recognize bad debts expense for 2024, the allowance for uncollectible accounts had a debit balance of 51,300. Required: What was the balance in gross accounts receivable as of 12/31/2023? What journal entry should Johnson record to recognize bad debt expense for 2024? Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2024. Determine the amount of accounts receivable written off during 2024. If Johnson instead used the direct write-off method, what would bad debt expense be for 2024?

Answer 2

Question

Chapter 11, Problem 4APSA

To determine

Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience.

Requirement 1:

To determine:

Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

To determine

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

To determine

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

To determine

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

To determine

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 11, Problem 4APSA

To determine

Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience.

Requirement 1:

To determine:

Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

To determine

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

To determine

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

To determine

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

To determine

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 11, Problem 4APSA

To determine

Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience.

Requirement 1:

To determine:

Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

To determine

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

To determine

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

To determine

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

To determine

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 4APSA

To determine

Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience.

Requirement 1:

To determine:

Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

To determine

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

To determine

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

To determine

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

To determine

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

Answer 6

Chapter 11, Problem 4APSA

To determine

Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience.

Requirement 1:

To determine:

Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

Answer 7

Chapter 11, Problem 4APSA

To determine

Warranty Expense and Liability Estimation: Warranty expense refers to expenses borne by a company due to repairs of their customers products, which are under warranty. In certain cases an estimation of such expense is made on the basis of past experience.

Requirement 1:

To determine:

Entries required to be passed for Warranty Expense and Liability Estimation for the periods of 2016 and 2017.

Answer 8

To determine

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

Answer 9

To determine

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

Answer 10

To determine

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

Answer 11

To determine

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

Answer 12

To determine

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

Answer 13

To determine

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

Answer 14

To determine

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

Answer 15

To determine

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - What are the three important questions concerning...Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ Ch. 11 - Prob. 7DQ Ch. 11 - Prob. 8DQ Ch. 11 - Prob. 9DQ Ch. 11 - Prob. 10DQ

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Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16

Want to see the full answer?

Chapter 11 Solutions

Concept explainers

Videos

Requirement 2: To determine: Warranty expenses to be recorded for the months of November and December,2016.

Requirement 3: To determine: Warranty expenses to be recorded for the month of January,2017.

Requirement 4: To determine: Balance of Estimated Warranty as on 31st Dec,16

Requirement 5: To Determine: Balance of Estimated Warranty as on 31st January,16

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Chapter 11 Solutions

Requirement 2:

To determine:

Warranty expenses to be recorded for the months of November and December,2016.

Requirement 3:

To determine:

Warranty expenses to be recorded for the month of January,2017.

Requirement 4:

To determine:

Balance of Estimated Warranty as on 31^st Dec,16

Requirement 5:

To Determine:

Balance of Estimated Warranty as on 31^st January,16