Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: ( in millions) Year 2 Year 1 Current estimated product warranty payable $11,272 $10,808 Noncurrent estimated product warranty payable 6,856 6,043 Total $18,128 $16,851 Presume that Lachgar’s sales were $146,889 million in Year 2. Assume that the total paid on warranty claims during Year 2 was $11,621 million. a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash on the business relative to the quick current assets and other longer-term . b. Provide the journal entry for the Year 2 product warranty expense. c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?

Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: ( in millions) Year 2 Year 1 Current estimated product warranty payable $11,272 $10,808 Noncurrent estimated product warranty payable 6,856 6,043 Total $18,128 $16,851 Presume that Lachgar’s sales were $146,889 million in Year 2. Assume that the total paid on warranty claims during Year 2 was $11,621 million. a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash on the business relative to the quick current assets and other longer-term . b. Provide the journal entry for the Year 2 product warranty expense. c. What two conditions must be met in order for a product warranty liability to be reported in the financial statements?

Financial Accounting Intro Concepts Meth/Uses

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Chapter9: Working Capital

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Accrued Product Warranty Lachgar Industries disclosed estimated product warranty payable for comparative years as follows: (in millions) Current estimated product warranty payable Noncurrent estimated product warranty payable Total Year 2 Feedback $14,903 9,065 $23,968 X Presume that Lachgar's sales were $194,201 million in Year 2 and that the total paid on warranty claims during Year 2 was $15,364 million. ▼ Check My Work Review the need for a classified balance sheet. Year 1 a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash demands business relative to the quick current assets and other longer-term demands $14,289 7,989 $22,278 b. Provide the journal entry for the Year 2 product warranty expense. If an amount box does not require an entry, leave it blank. Product Warranty Expense Product Warranty Payable X on the
Harbour Company disclosed estimated product warranty payable for comparative years as follows: (in millions) Current Year Prior Year Current estimated product warranty payable $11,201 $10,739 Noncurrent estimated product warranty payable 6,813 6,004 Total $18,014 $16,743 Assume that Harbour's sales were $132,098 million in current Year and that the total paid on warranty claims during the current year was $11,547 million. a. The distinction between short- and long-term liabilities is important to creditors in order to accurately evaluate the near-term cash the business relative to the quick current assets and other longer-term . b. Provide the journal entry for the current Year product warranty expense. Enter your answers in millions. If an amount box does not require an entry, leave it blank. Product Warranty Expense Product Warranty Payable c. What two conditions must be met in order for a product…
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Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability Income tax expense Mortgage payable, 6% $ 6,590 133,100 480,000 120-day note payable, 5% Unearned revenues Warranty expense $ 93,000 309,000 7,700 Additional information: a. $12,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following month. The actual amount of tax expense for the year is determined to be $139,040. b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of which will approximate $153,000 given similar cases in the industry. c. During December, Mackenzie had sales of $723,000. 6% of sales typically require warranty work equal to 15% of the sales amount. d. Mortgage payments are made on the first day of each month. e. $112,800 of the Unearned Revenues remain unearned at…
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Product A comes with a two year warranty when purchased by customers. The estimated warranty costs as a percentage of dollar sales are 3% in the year of sale and 5% in the second year after the sale. The following information relates to sales and warranty expenditures of Product A Actual warranty expenditures $ 10,000 $ 35,000 Year Year 1 Year 2 Sales $400,000 $500,000 Which of the following is NOT part of the required journal entry in Year 1 based on the above information? Multiple Choice Credit cash $10,000 Debit warranty expense $12,000 None of the other alternatives are correct Debit warranty expense $32,000 Credit sales $400,000

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bartleby, a Learneo, Inc. business

	( in millions)
	Year 2	Year 1
Current estimated product warranty payable	$11,272		$10,808
Noncurrent estimated product warranty payable	6,856		6,043
Total	$18,128		$16,851