Question 10 A Plus Appliances sells dishwashers with a four-year warranty. In 2019, sales revenue for dishwashers is $94,000. The company estimates warranty expense at 6.5% of revenues. What is the total estimated warranty payable of A Plus Appliances as of December 31,20197 A Plus Appliances began operating in 2019. (Round your final answer to the nearest dollar.) O $1548 O $4230 O $6110 O $3318 11:21 A
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- Problem 1 In 2020, Plumpton Company started selling new computer that carried a 2-year warranty against defects Based on the manufacturer's recommendations, the entity estimated warranty cost as a percentage of sales. First year of warranty Second year of warranty 3% 9% Sales and actual warranty repairs are as follows: Sales Actual warranty repairs 2020 P5.000.000 100.000 2021 P7.000.000 250.000 1. How much is the warranty expense for 2020? 2. How much is the estimated warranty liability for 2021 ?Question 12 On August 1, 2020, Alba Trading sold a machine for $13,000 cash with a two-year parts warranty. On March 1, 2021, the machine requires on-site repairs which cost $200 of the repair parts inventory. Alba estimates warranty costs to be 4% of dollar sales. In 2020, Alba reports warranty expense of: O A. $ 720. O B. $ 320. O C. $ 520. O D. $ 200.QUESTION 3 Staples extends a lifetime replacement warranty on all its financial calculators. Using past experience, Staples estimates that 1% of all units sold will be returned and require replacement at their average cost. On January 1, 2020, the balance in Staples' Estimated Warranty Liability account was $2,020. On January 2nd 2020 Staples purchased 6,000 calculators for $240,000 to have available in inventory. Staples sells its calculators for $50/unit, and during 2020, sales totaled $275,000. The actual number of units returned and replaced was 50. 1. Prepare the entry to estimate warranty liabilities based on the calculators sold for 2020. Assume the adjustment is made on December 31". 2. Record the replacement of the calculators returned in 2020 (use a date of December 31) 3. Calculate the balance in the Estimated Warranty Liability account at December 31, 2020.
- Question 13 Masterpiece Sales Company offers warranties on all their electronic goods. Warranty expense is estimated at 3% of sales revenue. In 2019, the company had $603,000 in sales. In the same year, Masterpiece Sales replaced defective goods with goods that had a cost of $18,500. Which of the following is the entry needed to record the replacement of the defective goods? Warranty Expense Estimated Warranty Payable 18,090 18,090 O Estimated Warranty Payable Merchandise Inventory 18,500 18,500 Estimated Warranty Payable 16,500 Merchandise lInventory 16,500 18,090 O Warranty Expense Merchandise Inventory 18,090 «>Smith Electic (SE) owed Estimated Warranty Payable of $1,100 at the end of 2023. During 2024, SE made sales of $100,000 and expects product warranties to cost the company 5% of the sales. During 2024, SE paid $2,600 for warranties. What is SE's Estimated Warranty Payable at the end of 2024? OA. $2,600 OB. $5,000 O C. $6,100 OD. $3,500Charm Company estimates its annual warranty expense as 2% of annual net sales. The following data relate to calendar year 2019. Net Sales P 3,200,000 Warranty Liability account: Balance, Jan. 1, 2019 10,000 debit before adjustment Balance , Dec. 31, 2019 54,000 credit after adjustment. Which of the following entries was made to record the 2019 estimated warranty expense? * A.Debit Warranty Expense 64,000 and Credit Estimated liability under warranties 64,000 B.Debit warranty Expense 64,000 Credit Accumulated profits/losses 10,000 and Estimated liability under warranties 54,000 C.Debit Warranty Expense 54,000 and Accumulated profits/losses 10,000 and Credit Estimated liability under warranties 64,000 D.Debit Warranty Expense 44,000 and Credit Estimated liability under warranties 44,000
- PART A BB Inc's sales during 2021 totaled $375,000, and the company estimates that warranty costs will be 4.4% of sales. The adjusted balance in Estimated Warranty Payable on December 31, 2020 was $21,000 Cr. BB Inc offers replacement products under its warranty plan. During 2021, warranty replacement costs were $12,900. A. Prepare the journal entry to record the 2021 warranty expense, and also the journal entry to record replacement costs under warranty. Use December 31.s the date for both. B. Determine the final balance in the warranty liability account on December 31, 2021. C. Do you recommend that BB Inc retain the 4.4% estimate? Why or why not. Answer in one brief bullet point or sentence. PART B BB Inc operates in Nova Scotia where HST is 15%. During the first quarter (January 1 to March 31) of 2022, 8B Inc purchased $13,000 inventory plus HST. During the first quarter, BB Inc recorded $17,000 sales revenue and charged customers HST. Prepare the journal entry to show BB Inc's…HANDOUT PROBLEM for CURRENT LIABILITIES I. Prepare journal entries for the following chronological transactions and a. You sold merchandise on account for $250,000 on account. The products cost $110,000. Your company uses a perpetual inventory system. Your sales included a two-year warranty on the product. You spent $1,400 to repair products in part "a." which were under warranty. On December 31, 2021, you estimated that there would be an additional $8,000 of b. с. repairs on products in part "a." You estimated that $5,000 of the repairs would оссur in 2022. In 2022, you performed $4,800 of repairs on products from part "a." and $1,920 of repairs on products sold in 2022. On December 31, 2022, you estimated that repairs on products sold in 2021 would be an additional $3,500 and for products sold in 2022 would be an additional $9,000. You believe that $5,400 of the $9,000 of repairs would occur d. е. in 2023. II. Based upon the transaction above, determine the amount of current…Absolute AppliancesThe company sold merchandise to a customer on December 1, 2019, for $120,000. The company accepted a promissory note as payment. The note has a term of three months and an annual interest rate of 10%. The company's accounting period ends on December 31.Refer to Absolute Appliances. What is the maturity date of the note? a. March 1, 2020 b. February 28, 2020 c. December 31, 2019 d. January 31, 2020
- On January 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in eight months. Calculate the amount of interest revenue Nees will record on September 1, 2021, the date that the note is due. a. $300.b. $600.c. $900.d. $1,000.In 2018, Bare company began selling a new calculator that carried a two-year warranty against defects. Bare projected the estimated warranty (as a percent of sales) as follows: First year of warranty 4% Second year of warranty 10% Sales and actual warranty repairs were: 2018 2019 Sales 5,000,000 9,000,000 Actual warranty repairs 200,000 560,000 How much is the amount of estimated liability for warranties on December 31, 2018?Sales made in 2021 for $3,000,000 includes a 2-year warranty coverage, included in the price. The estimated cost for warranty is expected to be 2% for the first year and 5% for the second year. How much warranty expense should be recorded in 2021? Question 4 options: $60,000 $150,000 $100,500 $210,000