FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
24th Edition
ISBN: 9781265497613
Author: Wild
Publisher: MCG
Question
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Chapter F, Problem 7E
To determine

Concept Introduction:

Warranty Expense:

A company may issue warranty with the sale of its product which bounds the company to replace or repair in case of quality failure according to the terms of the warranty. The provision for the estimated warranty liability is made at the time of sale of the products and warranty expense is recorded. This provision is utilized at the time of performing the warranty contract.

Requirement-1:

To Prepare:

The Journal entry to record the estimated warranty liabilities for the year

To determine

Concept Introduction:

Warranty Expense:

A company may issue warranty with the sale of its product which bounds the company to replace or repair in case of quality failure according to the terms of the warranty. The provision for the estimated warranty liability is made at the time of sale of the products and warranty expense is recorded. This provision is utilized at the time of performing the warranty contract.

Requirement-2:

To Prepare:

The Journal entry to record the utilization of the estimated warranty

To determine

Concept Introduction:

Warranty Expense:

A company may issue warranty with the sale of its product which bounds the company to replace or repair in case of quality failure according to the terms of the warranty. The provision for the estimated warranty liability is made at the time of sale of the products and warranty expense is recorded. This provision is utilized at the time of performing the warranty contract.

Requirement-3:

To Indicate:

The amount of warranty expense recorded by the company for the year

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Kindly halp me with this question general accounting
Given:Population- 500 accountsSample- 100 accountsBook Value of Sample- $20,000Population Book Value- $75,000Audit Value of Sample- $18,000Tolerable error- $8,000Using difference estimation, the projected population value is a. $83,000b. $90,000C. $67,000d. $65,000e. $85,000 is the correct answer c or d
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