Brigham Company sells an electric timer that carries a 60-day unconditional warranty against product failure. Based on a reliable statistical analysis, Brigham knows that between the sale and the end of the product warranty period, three percent of the units sold will require repair at an average cost of $35 per unit. The following data reflect Brigham's recent experience: Units sold Known product failures from sales in: October November December October November December Dec. 31 Total 36,000 34,000 45,000 115,000 320 550 230 210 360 410 1,080 590 410 Calculate the estimated liability for product warranties at December 31. $ 168,510 X (Assume that warranty costs of known failures have already been reflected in the records.)
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- Warranty Costs Brigham Company sells an electric timer that carries a 60-day unconditional warranty against product failure. Based on a reliable statistical analysis, Brigham knows that between the sale and the end of the product warranty period, three percent of the units sold will require repair at an average cost of $105 per unit. The following data reflect Brigham's recent experience: Units sold Known product failures from sales in: October November December October November December Dec. 31 Total 54,000 51,000 67,500 172,500 480 825 345 315 540 615 1,620 885 615 Calculate the estimated liability for product warranties at December 31. $ (Assume that warranty costs of known failures have already been reflected in the records.)Coronado Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Coronado estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $25. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month November December (a) Units Sold 31,600 33,600 Units Defective Prior to December 31 632 Account Titles and Explanation 420 Prepare the journal entry to record the costs incurred in honoring 1,052 warranty claims. (Assume actual costs of $26,300.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit CreditWarranty CostsMilford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable statistical analysis, Milford knows that between the sale and the end of the product warranty period, four percent of the units sold will require repair at an average cost of $60 per unit. The following data reflect Milford’s recent experience: October November December Dec. 31 Total Units sold 23,000 22,000 25,000 70,000 Known product failures from sales in: October 120 180 160 460 November 130 220 350 December 210 210 Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records. General Journal Date Description Debit Credit Dec.31 AnswerProduct Warranty ExpenseEstimated Liability for Product Warranty Answer Answer AnswerProduct Warranty ExpenseEstimated…
- Bramble Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Bramble estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month Units Sold Units Defective Prior to December 31 November 32,000 640 December 34,000 425 (a) Prepare the journal entry to record the costs incurred in honoring 1,065 warranty claims. (Assume actual costs of $21,300.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit CreditBramble Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Bramble estimates that 3% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2022 are as follows. Month Units Sold Units Defective Prior to December 31 November 32,000 640 December 34,000 425 (a) Your Answer Correct Answer Your answer is partially correct. Prepare the journal entry to record the costs incurred in honoring 1,065 warranty claims. (Assume actual costs of $21,300.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Warranty Expense 21,300 Notes Payable 21,300Modem Appliances, Inc. sells food processors for $150 with a 120-day warranty against defects. Past experience indicates that 5% of the processors will have some defect during the warranty period and that the necessary repairs and adjustments will cost $25 per defective unit. Sales for August are $225,000. What is the estimated liability for product warranties for units sold in August? Select one: a. $3,000 b. $1,800 C. $11,250 d. $1,875 e. None of the above
- 3. Jansen Company sells a product for $400 per unit, which includes a 30-day warranty against product defects. Experience indicates that four percent of the units sold will prove defective, requiring an average repair cost of $50 per unit. During the first month of business, product sales were $320,000, and 20 of the units sold were found to be defective and repaired during the month. What is the accrued liability for product warranties at month-end? a $1,000 b. $600 c. $1,600 d. $2,000Ebony Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, Ebony Company has the following accounts receivable balances: From April sales P21,000 From May sales 48,000 Select the correct response: P140,000 P70,000 P72,414 P150,000The company has the following expected pattern of collections on credit sales 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, the company has the following accounts receivable balances From April sales P21.00 From May sales P48.000 The company's expected sales for June are P150,000. How much cash will the company to collect in June?
- A company sells goods with a warranty for the cost of repairs required in the first 1 month after purchase. Past experience of suggests: stion i) 85% of the goods sold will have no defects ii) 8% will have minor defects iii)7% will have major defects If minor defects were detected in all products sold, the cost of repairs will be OMR 66,000; if major defects were detected in all products sold, the cost would be OMR 272,000. What amount of provision should be made? OMR 50,700 OMR 24,320 OMR 26,380 个 None of themGeaham Company projects the following sales for the first three months of the year: $12.600 in January $16,100 in February, and $11,100 in March The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dolar Read the requirements Requirement 1. Prepare a schedule of cash receipts for Graham for January, February, and March. What is the balance in Accounts Receivable on March 31? (Leave unused and zero balance account cels blank, do not enter "0) Cash Receipts from Customers January February March Total Total sales February January March Total Cash Receipts from Customers Accounts Receivable balance, January 1 January-Cash sales January-Credit sales, collection of January sales in January January-Credt sales, collection of January sales in February February-Cesh sales February-Credt sales,…Maelstrom limited sells only on credit. They started business in June 2021. The sales are collected as follows: 46% in the current month, 28% in the following month, and 10% two months following the sale Sales for the first six months of operation are expected to be: June 21,101; July 22,162; August 20,486; September 27,766; October 26,537 and November 29,411. Predict the total sales expected to be collected in July. Calculate to two decimal places.