Dagupan Company prepares quarterly interim
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Dagupan Company prepares quarterly interim financial reports. The entity sells electrical goods and normally 5% of customers claim on their warranty. The provision in the first quarter was calculated at 5% of sales to date which amounted to P10,000,000. However, in the second quarter, a design fault was found, and warranty claims were expected to be 10% for the whole year. Sales for the second quarter amounted to P15,000,000. What would be the provision charged in the second quarter’s interim income statement?
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- Davao Company prepares quarterly interim financial reports. The entity sells electrical goods and normally 5% of customers claim on their warranty. The provision in the first quarter was calculated at 5% of sales to date which amounted to P10,000,000. However, in the second quarter, a design fault was found and warranty claims were expected to be 10%o for the whole year. Sales for the second quarter amounted to P15,000,000. What amount of provision should be charged in the second quarter's interim income statement?Pinnacle Company prepares quarterly interim financial reports. The entity sells electrical appliances and normally 5% of the customers claim on their warranty. The provision in the first quarter was calculated at 5% of sales to date which amounted to P10,000,000.However, in the second quarter, a design fault was found and warranty claims were expected to be 10% for the whole year. Sales for the second quarter amounted to P15,000,000. What amount should be reported as warranty expense in the interim income statement for the second quarter? A. 2000000B. 1250000C. 1500000D. 750000Pinnacle Co., prepares quarterly interim financial reports. The entity sells electric fans and normally 5% of their customers claim on their warranty. The provision in the first quarter was calculated at 5% of sales to date which amounted to 20,000,000. However, in the second quarter, a design fault was found and warranty claims were expected to be 10% for the whole year. Sales for the second quarter amounted to P30,000,000. What amount of provision should be charged in the interim income statement for the second quarter?A. 4,500,000B. 4,000,000C. 3,750,000D. 3,000,000
- Pinnacle Co., prepares quarterly interim financial reports. The entity sells electric fans and normally 5% of their customers claim on their warranty. The provision in the first quarter was calculated at 5% of sales to date which amounted to 20,000,000. However, in the second quarter, a design fault was found and warranty claims were expected to be 10% for the whole year. Sales for the second quarter amounted to P30,000,000. What amount of provision should be charged in the interim income statement for the first quarter? A. 2,500,000B. 3,750,000C. 1,500,000D. 1,000,000An entity normally provides 4% warranty on its products. The provision in the first quarter was for sales amounting to P5,000,000. For the second quarter, a major issue was found on its products and warrantly claims were expected to be 12% for the whole year. Sales for the second quarter amounted to P15,000,000. What amount should be reported as warranty expenses in the interim income statement for the 2nd Quarter? A. 1,800,0002 B. 2,400,000 C. 2,200,000 D. 1,600,000KOREA Company prepares quarterly interim financial reports in accordance with IAS 34, Interim Financial Reporting. The company sells electronics and normally, 5% of customers claim on their warranty. The provision for the first quarter was calculated as 5% of sales to date, which is P10 million. However, in the second quarter, a design fault was found and warranty claims were expected to be 10% for the entire year. Sales made during the second quarter were P15 million. How much is the warranty expense to be recognized by KOREA on its income statement for the second quarter?
- Among the transactions of WRY TO TWIST Company for the first two quarters of 20x1 were the following: WRY recognized a ₱200,000 write-down in its inventory during the first quarter. WRY had expected that the write-down will reverse in the second quarter, and in fact, in the second quarter, the recovery exceeded the previous write-down by ₱40,000.WRY provides warranty for its sales. In the first quarter, WRY estimated a 5% warranty obligation on its first quarter sales of ₱2,000,000. In the second quarter, a change in accounting estimate was made. It was estimated that the cost of warranty should be 10% of total sales. The second quarter sales amounted to ₱2,400,000.WRY has been estimating its bad debt expense as 2% of credit sales. However, in the second quarter, a change was made to the percentage of ending receivable. Under this method, the required balance of the allowance for doubtful accounts as of June 30, 20x1 is computed at ₱60,000. The allowance has a balance of ₱10,000 at the…ABC Company prepares quarterly calendar interim financial reports. Entity sells goods and normally 8% of customers claim on their warranty. Provision in the first quarter was calculated 8% of sales to date which amounted to P 6M. second quarter sales amounted to 140% of first quarter sales. In third quarter, better data are available and revision of percentage is implemented which is increased by P 2.50%. Sales for the second quarter amounted to 70% of combined first and second quarter sales. In the fourth quarter, percentage of warranty is consistent with third quarter but total warranty expense to be recognized for the year should not exceed 9.00% of the total sales. Fourth quarter sales is 40% of third quarter sales. How much is the warranty expense for the fourth quarter interim financial statements?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?
- During 2008, Luciana Company introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to peso sales are 3% within 12 months following sale and 5% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2007 and 2008 are as follows: Sales Actual expenditures 2007 40,000,000 1,000,000 2008 50,000,000 4,000,000 At December 31, 2008, Luciana would report estimated warranty liability of O None of these O 2,200,000 O 1,500,000 O 2,500,000Kap Co. offers a three year warranty on its products. Kap previously estimated warranty costs to be 2% of sales. Due to a technological advance in production at the beginning of year 3, Kap now believes 1% of sales to be a better estimate of warranty costs. Warranty costs of P800,000 and P960,000 were reported in year 1 and year 2, respectively. Sales for year 3 were P50,000,000. 1. What amount should be presented in Kap's year 3 financial statements as warranty expense?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
