Flounder Ltd. purchases units of wood frames that have manufacturer's volume rebates from Novak Inc. The rebate requires Flounder to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.00 before any rebate. If more than 4,140 units are purchased, the rebate is $0.50 per unit for all units purchased beyond the base amount of 4,140 units. Flounder has a June 30 fiscal year end. By June 30, 2023, Flounder had purchased 2,850 wood frames for the six-month period from January 1, 2023, to June 30, 2023. Flounder estimates that an additional 2,850 wood frames will be purchased from July 1, 2023, to December 31, 2023. Flounder's management is very confident that this estimate will be confirmed by future purchases from Novak. (b) Your Answer Correct Answer Your answer is correct. Calculate the amount of any rebate that Flounder should accrue at June 30, 2023, assuming the rebate cannot be cancelled by Novak. (Round answer to 2 decimal places, e.g. 52.75.) (c) Accrued rebate receivable $ eTextbook and Media Solution * Your answer is incorrect. Per unit cost Calculate the unit cost that Flounder should use in the costing of wood frames, using the perpetual inventory system. (Round answer to 4 decimal places, e.g. 52.1212.) $ eTextbook and Media Solution 390 2.79 Assistance Used Attempts: 3 of 3 used

Waterway Company sells televisions at an average price of $ 934 and also offers to each customer a separate 3-year warranty contract for $ 87 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 294 televisions and 214 warranty contracts for cash. It estimates the 3-year warranty costs as $21 for pa and accounts for warranties separately. Assume sales occurred on December 31.2020, and parts and $41 for labor, straight-line recognition of warranty revenues ocurs. Part 1 Record any necessary journal entries in 2020. (f no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account tities are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer Part 2 What liability relative to these transactions would appear on the December 31, 2020,…

Pronghorn Computer Company sells computers for $1,800 each, which includes a three-year warranty that requires the company to perform periodic services and to replace defective parts. During 2023, Pronghorn sold 580 computers on account. Based on past experience, the company has estimated the total three-year warranty costs at $80 for parts and $100 for labour. (Assume sales all occur at December 31, 2023.) In 2024, Pronghorn Computer Company incurred actual warranty costs relative to 2023 computer sales of $9,800 for parts and $13,000 for labour. (a) Using the expense warranty approach, prepare the entries to reflect the above transactions (accrual method) for 2023 and 2024. Use Salaries and Wages Payable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation 2023 (To…

On March 10, 2020, Pharoah Company sold to Barr Hardware 180 tool sets at a price of $51 each (cost $29 per set) with terms of n/60, f.o.b. shipping point. Pharoah allows Barr to return any unused tool sets within 60 days of purchase. Pharoah estimates that (1) 10 sets will be returned, (2) the cost of recovering the products will be immaterial, and (3) the returned tools sets can be resold at a profit. On March 25, 2020, Barr returned 6 tool sets and received a credit to its account. (a) Prepare journal entries for Pharoah to record (1) the sale on March 10, 2020, (2) the return on March 25, 2020, and (3) any adjusting entries required on March 31, 2020 (when Pharoah prepares financial statements). Pharoah believes the original estimate of returns is correct. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Your answer is correct. No.…