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

Q: On November 10, Lee Co. began operations by purchasing coffee grinders for resale. The grinders have…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Ace Appliances Inc. offers a 12-month warranty on all its appliances. Ace Appliances estimates that…

A: A warranty is a policy given to the customers to repair or replace any specified damage to the…

Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 4,413…

A: Warranty expense is the amount that a company estimates to be incurred in a warranty period or is…

Q: During Year 3, the Seahawks Inc. sold 150 dune buggies for $4,000 each. The dune buggies carry a…

A: Estimated repair cost = Total ales x 4% = (150 x $4,000) x 4% = $24,000

Q: Pinnacle Co., prepares quarterly interim financial reports. The entity sells electric fans and…

A: GIVEN     The provision in the first quarter was calculated at 5% of sales to date which amounted to…

Q: During 2011, Rex Company introduced a new product carrying a two-year warranty against defects. The…

A: Estimated warranty liability will be equal to Estimated Warranty Expenses minus Actual warranty…

Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…

A: 1. Warranty Expense  = 2% of Net sales   Net sales = 3,200,000 Warranty expense = 3,200,000 x 2% =…

Q: An entity normally provides 4% warranty on its products. The provision in the first quarter was for…

A: Warranty expenses is a form of assurance being provided by seller to the buyer that in case product…

Q: The Price is Right manufactures electronic systems. The company provides a one-year warranty for all…

A: The warranty Expenses are estimated on the basis of percentage of the sales of current period,…

Q: What is the warranty expense for 2020? What is the warranty expense for 2021? What is the warranty…

A: Given information is: In 2020, Pluto Company started selling new computer that carried a 2-year…

Q: East Corp. manufactures stereo systems that carry a two-year warranty against defects. Based on past…

A: Income statement is a financial statement which shows all income and expenses of the business and at…

Q: Cloudrain Co gives a one-year warranty with all products and the rate of returns under warranty is…

A: Total Units sold= 52500 Expected returns= 12% Total Returns made= 63000 units  Total cost for the…

Q: XYZ Computers manufactures and sells moblile tokens and radio token systems which include a 180 day…

A: Journal entries:   Journal entry records the financial transactions of a business in a journal book.…

Q: ​USA, a tire​ manufacturer, guarantees its tires against defects for five years or​ 60,000 miles,…

A: Note: A journal entry is a form of accounting entry that is used to report a business transaction in…

Q: During June, Vixen Company sells $850,000 in merchandise that has a one year warranty. Experience…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: Pink Company had a warranty liability of P350,000 at the beginning of current year and P310,000 at…

A: The warranty expense is the expense estimated on the basis of previous years warranty expenses on…

Q: Consumer Corp. sells dishwashers and washing machines that come with a two-year unlimited warranty…

A: Date Accounts Titles and Explanations Debit Credit 20X5 Cash     Sales Revenue (For…

Q: The beginning warranty liability was $25,000. Sales of $5,000,000 were made, and 1% of sales is the…

A: Estimated warranty cost = 1% of sales  = $5,000,000 x 1% = $50,000

Q: Al Jabel Corporation sells WIFI speakers and offers 2-year warranty contract to customers. During…

A: A journal entry is used to record a business transaction in a company's accounting records. A…

Q: Relay Company estimated that annual warranty expense at 2% of annual net sales. The net sales for…

A: Introduction: Warranty is a contingent liability that the organization records in its books of…

Q: Al Jabel Corporation sells WIFI speakers and offers 2-year warranty contract to customers. During…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…

A: Answer -    PART 1 - No Date General journal Debit Credit           1 Nov-11 Cash   $…

Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…

A: Warranty expense during the year = Net sales x estimated % of warranty expense

Q: What amount of liability would the company report on its statement of financial position at the end…

A: $6,500,000 + (50,000 X $200) - $7,500,000 =$9,000,000

Q: On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…

A: Warranty expenses on Nov 30  =  $ 4800 * 8% = $ 384 Warranty Liability on Dec 9 = 12 razors * $ 16 =…

Q: During Year 2, Going-Going-Gone sold 100 hot air balloons for $4,000 each. The balloons carry a…

A: Estimated repair cost = Total ales x 4% = (100 x $4,000) x 4% = $16,000

Q: What is the balance of the Estimated Warranty Liability account as of January 31?

A: The balance of the estimated warranty liability account will be calculated by drawing a ledger…

Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consist of 2,105…

A: The warranty expense refers to the cost expected to be incurred for repair or replacement after the…

Q: The Price is Right manufactures electronic systems. The company provides a one-year warranty for all…

A: The warranty liability is estimated on the basis of past years experiences and the number of units…

Q: During 2011, Rex Company introduced a new product carrying a two-year warranty against defects. The…

A: Formula: Estimated warranty liability  amount= Sales amount x Warranty liability %

Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of…

A: Introduction: An income statement is a critical financial record for every company. It illustrates…

Q: ABC Company manufacturers high end-whole electronic systems. The company provides a one-year…

A: ABC Company reported liability for estimated warranty costs of P6.5 million at the beginning of this…

Q: On October 1, Dalton Corp. borrows $100,000 fromNational Bank, signing a six-month note payable for…

A: Interest amount: Interest charged on the borrowed principal amount. Interest is charged…

Q: Pinnacle Company prepares quarterly interim financial reports. The entity sells electrical…

A: The warranty Expenses are estimated on the basis of sales revenue earned during the period. The…

Q: Ace Appliances Inc. offers a 12-month warranty on all its appliances. Ace Appliances estimates that…

A: Adjusted Warranty Liability = Average cost per warranty claim * Expected number of appliance require…

Q: On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a…

A: Journal entry is the first step to record transaction in the books of account. Warranty cost = 5% of…

Q: Dagupan Company prepares quarterly interim

A: Total warranty = warranty claim% * first quarter scales + second quarter scales = 10% * P 10000000 +…

Q: EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all…

A: Liability created during the year = Net Sales * 4% *30% = $2850 * 4% *30% = $34.20 million

Q: Pinnacle Co., prepares quarterly interim financial reports. The entity sells electric fans and…

A: Interim financial statements are those statements which cover the period of less than a year and it…

Q: the monthly payment is $5,800, what is the note's carrying value after the first month's payment is…

A: The original cost of an asset, as recorded in the books or balance sheet of a corporation, less the…

Q: Ace Appliances Inc. offers a 12-month warranty on all its appliances. Ace Appliances estimates that…

A: Adjusted Warranty Liability = Average cost per warranty claim * Expected number of appliance require…

Q: Sellers Computer is a leader in the computer industry with over $59 billion in sales each year. A…

A: The question is based on the concept of Financial Accounting.

Q: On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…

A: Journal entry is a first step in recording accounting transaction in the books of the company. It…

Q: During 2017, Alaa Company sold 600 TV for $500 each. The sold items include a one-year warranty. The…

A: Estimated warranty cost = No. of TV sold x estimated warranty % x cost per TV = 600 x $40 x 5% =…

Q: Davao Company prepares quarterly interim financial reports. The entity sells electrical goods and…

A: Given data: Sales in the first quarter = P10,000,000 Sales in the second quarter = P15,000,000…

Q: A new product introduced by Reyes Promotions carries a two-year warranty against defects. The…

A: A warranty is like some kind of guarantee that a company is giving when customers buy the product. A…