Jewellery Limited manufactures and sells different kinds of handmade fine jewellery. The company warrants its products for one year. The average price per piece of jewellery is $5,000 and the company sold 800 products in 2018. By the end of 2018, based on historical information the company estimates 5% of the jewellery sold to develop defective parts within one year. The estimated average cost of warranty repairs per defective item is $100. During 2019, customers have returned 20 pieces of jewellery sold that year for repairs. By the end of 2019, the company expects 7% of the jewellery sold to develop defective parts within one year. The estimated average cost of warranty repairs per defective item is $120. The company sold 900 products in 2019 with the same average price per piece of 5,000. The balance day of Jewellery Limited is 31 December.   Record the necessary journal entries in 2018 and 2019 regarding the warranty.

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Ashvin

EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During 2017, the company recorded net sales of $1,900 million. Historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 30% of retail value. Assume that at the start of the year EZ Wheels’ balance sheet included an accrued warranty liability of $16.3 million and at the end of the year, the accrued warranty liability balance was $12.4 million.   How much did EZ Wheels pay during the year to repair and/or replace scooters under warranty?   this seems like the same question is it not 22.8?

Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It sold out 25,000 food blenders at an average price of $130. Moon provides a 2-year warranty for each blender sold and estimates 9% of blenders will be returned for warranty with an estimated cost of $36 each. By the end of 2019, Moon has spent $44,000 servicing the warranty repairs. All the above transactions have been settled in cash.   During 2019, Moon has 50 employees who work 5-day per week and get paid each other Friday. Salaries of $324,000 and payroll expense of $37,000 have been paid until December 22.   Since the business grows quickly, Moon needs cash to expand. By the end of 2018, the Board of Directors authorized the management to issue 10-year bonds with a par value of $3,000,000, annual contract interest rate of 8% and semi-annual interest payments. Moon chose to use the straight-line method to amortize discount or premium on its bonds. On January 1, 2019, management issued…

Woodmier Lawn Products introduced a new line of commercial sprinklers in 2023 that carry a one-year warranty against manufacturer's defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 2% of sales. Sales of the sprinklers in 2023 were $2.8 million. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product: General Journal Accrued liability and expense Warranty expense (2% × $2,800,000) Warranty liability Actual expenditures (summary entry) Warranty liability Cash Debit 56,000 Required 1 Required 2 25,000 Credit 56,000 In late 2024, the company's claims experience was evaluated and it was determined that claims were far more than expected-3% of sales rather than 2%. View transaction list 25,000 Required: 1. Assuming…

During 2020, Polly started manufacturing and selling a new product with a three-year warranty. Polly prepares annual AJES once each year as 12-31. Based upon past experience with comparable products, Polly estimated the following warranty costs as a % of sales dollars: 2% First year of warranty Second year of warranty Third year of warranty Polly's sales during 2020 and 2021, respectively, were $600,000 and $720,000. Polly's actual warranty expenditures for 2020 and 2021, respectively, were $5,000 and $21,000. . What was Polly's estimated warranty expense amount for 2021? What was Polly's estimated warranty liability amount as of 12-31-21? 3% 5% .

Moon Co. sells food blenders. During 2019, Moon made 37,000 blenders at an average cost of $80. It sold out 25,000 food blenders at an average price of $130. Moon provides a 2-year warranty for each blender sold and estimates 9% of blenders will be returned for warranty with an estimated cost of $36 each. By the end of 2019, Moon has spent $44,000 servicing the warranty repairs. All the above transactions have been settled in cash.   During 2019, Moon has 50 employees who work 5-day per week and get paid each other Friday. Salaries of $324,000 and payroll expense of $37,000 have been paid until December 22.   Since the business grows quickly, Moon needs cash to expand. By the end of 2018, the Board of Directors authorized the management to issue 10-year bonds with a par value of $3,000,000, annual contract interest rate of 8% and semi-annual interest payments. Moon chose to use the straight-line method to amortize discount or premium on its bonds.   On January 1, 2019, management…