Ecco Company sold $155,000 of kitchen appliances with six-month warranties durin September. The cost to repair defects under the warranty is estimated at 5% of the sales price. On October 15, a customer required a $120 part replacement, plus $90 labor under the warranty. Required: Provide the journal entry for (a) the estimated expense on September 30 and (b) the October 15 warranty work. Refer to the Chart of Accounts for exact wording of account titles.

Alpesh

Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects under the warranty is estimated at 5% of the sales price. During September, Excom sells 110 radios for $40 each. One radio is actually replaced during September. For what amount in September would Excom debit Product Warranty Expense? Оа. S40 Оb. $21 Oc. $220 Od. $2,310 Previous

On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $15 and its retail selling price is $80. The company expects warranty costs to equal 7%  of dollar sales. The following transactions occurred.  November 11 Sold 70 razors for $5,600 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 14 razors that were returned under the warranty. December 16 Sold 210 razors for $16,800 cash. December 29 Replaced 28 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 140 razors for $11,200 cash. January 17 Replaced 33 razors that were returned under the warranty. January 31 Recognized warranty expense related to…

Sea Port Company sells a product that carries a 60-day unconditional warranty against product failure.  Based on statistical analysis, Sea Port knows that between the time of sale and the lapse of the warranty, 4% of the units sold will fail and require repair at an avenge cost of $40 per unit.    The following data reflect the first three months during which the product was sold.     October November December Units sold 30,000 36,000 60,000 Known units of product failure       From sales of   October 480 600 120                          November   300 960                          December     900   Prepare the general journal entry to record Sea Port’s estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records.

Video-Technical, Inc. was organized to sell a single product for $600 per unit, including a 60-day warranty against defects.  Engineering estimates indicate that 5% of the units sold will prove defective and require an average repair cost of $50 per unit.  During September, total sales were $198,000; 9 units sold during September were found defective and repaired. The accrued liability for product warranties at month-end should be:   Select one: a. $   850 b. $   400 c. $   450 d. $1,150 e. None of the above

Fantastic Co. sold $150,000 of kitchen appliances during August under a six month warranty. The cost to repair defects under the warranty is estimated at 5% of the sales price. On September 12, a customer required a $2000 part replacement plus $90 of labor under the warranty. Journal entry to record estimated warranty expenses will be: Select one: a. Provision for product warranty Dr 9,000 Warranty Expenses Cr 9,000 b. Provision for product warranty Dr 2090 Warranty Expenses Cr 2090 c. Right option is not listed d. Warranty Expenses Dr 7,500 Provision for product warranty Cr 7,500

Estimated Warranty Liability Cook-Rite sold $152,000 of consumer electronics during July under a one-year warranty. The cost to repair defects under the warranty is estimated at 6.5% of the sales price. On November 10, a customer was given $108 cash under terms of the warranty. (a) Provide the journal entry for the estimated warranty expense on July 31 for July sales. If an amount box does not require an entry, leave it blank. July 31 (b) Provide the journal entry for the November 10 cash payment. If an amount box does not require an entry, leave it blank. 88 Nov. 10

On January 15, Ross Furniture, Inc., accepts a $5,000, 180-day, 10 percent note from a customer at the time of a product sale. Prepare the Journal entry?

During December, Maxum Company sold 3,900 units of a product that carries a 60-day warranty. December sales for this product total $127,000. The company expects 6% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $19. Record the related adjusting entry.