atek Watch Company estimates that warranty costs will equal 2% of sales. In September, total sales equaled $400,000 and warranty claims were 4,700. If the September beginning balance in warranty payable was $7,200, what was the September ending balance in warranty payable? OA. $3,300 B. $3,900 OC. $8,000 OD. $10,500 OE. $10,800

atek Watch Company estimates that warranty costs will equal 2% of sales. In September, total sales equaled $400,000 and warranty claims were 4,700. If the September beginning balance in warranty payable was $7,200, what was the September ending balance in warranty payable? OA. $3,300 B. $3,900 OC. $8,000 OD. $10,500 OE. $10,800

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,392 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of Oa. $40,664 Ob. so Oc. $28,465 Od. $12,199
Blazer Company sells merchandise with a 1-year warranty. In Year 1, sales consisted of 3,300 units. It is estimated that warranty repairs will average $12 per unit sold, and 30% of the repairs will be made in Year 1 and 70% in Year 2. In the income statement for Year 1, Blazer Company should show warranty expense of a.$39,600. b.$27,720. c.$11,880. d.$0.
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?
Urban Inc. has sales of $45,000 during January and a 90 day warranty on all products sold. It is estimated 3% of January sales will require warranty repairs. What is the journal entry on January 31 to accrue for warranty costs? Debit Accrued Warranty Payable $1,350; Credit Warranty Expense $1,350 Debit Accrued Warranty Payable $45,000; Credit Warranty Expense $45,000 Debit Warranty Expense $45,000; Credit Accrued Warranty Payable $45,000 O Debit Warranty Expense $1,350; Credit Accrued Warranty Payable $1,350
Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 2,987 units. It is estimated that warranty repairs will average $17 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$35,545 b.$0 c.$50,779 d.$15,234
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.
A company sold 10,000 TVs in July and estimates warranty expense for these TVs to be $25,000. During July, 80 TVs were serviced under warranty at a cost of $18,000. The credit balance in the Estimated Warranty Liability account at July 1 was $26,000. What is the company’s warranty expense for the month of July? a. $51,000 c. $25,000 e. $18,000 b. $1,000 d. $33,000
Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 4,413 units. It is estimated that warranty repairs will average $15 per unit sold and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of a.$0 b.$66,195 c.$46,337 d.$19,859
During June, Vixen Company sells $850,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price. Customers returned $14,000 of merchandise for warranty replacement during the month. The entry to record the estimated warranty provision at the end of the month is: Multiple Choice A) Debit Warranty Expense $11,500; credit Estimated Warranty Liability $11,500. B) Debit Warranty Expense $14,000; credit Estimated Warranty Liability $14,000. C) Debit Warranty Expense $25,500; credit Estimated Warranty Liability $25,500. D) Debit Estimated Warranty Liability $14,000; credit Warranty Expense $14,000. E) Debit Estimated Warranty Liability $11,500; credit Warranty Expense $11,500.
h. Vacation pay expense for December, $10,500. Description Debit Credit i. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December. Description Debit Credit j. Interest was accrued on the note receivable received on October 17. Assume 360 days per year. sem: Description Debit Credit
The beginning warranty liability was $25,000. Sales of $5,000,000 were made, and 1% of sales is the estimated warranty cost. The ending balance of the warranty liability was $35,000 (credit). How much warranty work was performed?
Blue Jay, Inc., manufactures and sells computer monitors with a three-year warranty.Warranty costs are expected to average 7% of sales during the warranty period. The followingtable shows the sales and actual warranty payments during the first two years of operations:Year Sales Warranty Payments2018 $650,000 $ 5,8502019 850,000 42,500Based on these facts, what amount of warranty liability should Blue Jay, Inc., report on itsbalance sheet at December 31, 2019?a. $48,350b. $56,650c. $105,000d. $42,500