The above answer can be explained as under -
The journal entry to record estimated warranty expense is -
Warranty Expense Dr. ............. $ 17,800
Estimated Warranty Liability .......... Cr. $ 17,800.
The estimated warranty liability is calculated on the basis of the credit sales of the year and percentage estimated. Here, the credit sales of the year is $ 356,000 and the estimated percentage is 5 % of credit sales. Thus, estimated warranty liability is = $ 356,000 
<em>Cross Profit :</em>
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<em>The profit a company makes after deducting all costs associated with creating and selling its products or services is known as gross profit. By subtracting the cost of goods sold (COGS) from total sales, you may compute gross profit.</em>
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<em>Gross Loss Carriage :</em>
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<em>the entire sum of a company's losses from various operations in a given period, even if some of these activities are profitable: The corporation announced a second-quarter gross loss of $17.15 billion today.</em>
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Answer:
<u>Cash Budget for the First Quarter.</u>
Total Receipts :
Collections From Customers $188,700
Sale of Equipment $3,060
$191,760
Total Payments :
Direct materials $43,860
Direct labor $71,400
Manufacturing overhead $35,700
Selling and administrative expenses $45,900
Purchase of securities $14,280
$210,840
Net Receipts / (Payments) ($19,080)
Opening Balance $30,600
Closing Balance $11,520
Required Balance $25,500
Loan (Shortfall) $14,250
Explanation:
A cash budget shows a future estimate of future cash incomes and cash expenditures.
