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Kruka [31]
2 years ago
9

(a) Dell Computers is a leader in the computer industry with over $ 59 billion in sales each year. A recent annual report for De

ll contained the following note:
Warranty
We record warranty liabilities at the time of sale for the estimated costs that may be incurred under our limited warranty. Factors that affect our warranty liability include the number of installed units currently under warranty, historical and anticipated rates of warranty claims on those units, and cost per claim to satisfy our warranty obligation.
Assume that estimated warranty costs for the current year are $ 500 million and that $ 400 million of warranty work was performed during the year. Provide the journal entries required to recognize warranty expense and the warranty services provided during the year. Assume that all warranty services were paid for with cash.
Business
1 answer:
sp2606 [1]2 years ago
6 0

1. Warranty Expense a/c……………..Dr $501,100,000

                 To warranty payable a/c…………….$501,100,000

(Warranty expense incurred)

   Warranty Payable a/c………………Dr $415,000,000

                 To Cash a/c…………………………..$415,000,000

(Warranty Expense paid by cash)

2. Cash a/c………………………Dr $90,900,000

                 To Unearned revenue a/c………$90,900,000

(Recognize the receipt of cash)

  Unearned revenue a/c…………..Dr $80,050,000 ($90,900,000 - $2,850,000)

                 To Revenue a/c……………………$80,050,000

(Recognized as revenue)

Warranty liability is a legal responsibility account in which a company records the amount of the repair or replacement cost that it expects to incur for products already shipped or services already provided. This can be an extensive liability for more complicated products subject to breakage.

Accrue the warranty expense with a debit to the warranty price account and a credit to the warranty liability account. As actual warranty claims are received, debit the warranty liability account and credit the stock account for the cost of the replacement parts and products sent to customers.

learn more about liability here brainly.com/question/25687338

#SPJ4

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Demand pull inflation can be started by A. an increase in the price of oil B. a decrease in the quantity of money. C. an increas
devlian [24]

Answer:

Option "C" is correct.

Explanation:

An increase in government expenditure causes more money inflow on demand over supply.

6 0
3 years ago
1. Which of the following ratios are key components in measuring a company's operating efficiency? (You may select more than one
mrs_skeptik [129]

Answer:

Explanation:

1. c. Return on total assets checked

d. Total asset turnover checked

2) b. Debt ratio

3) d. Working capital

4) c. Accounts receivable turnover checked

8 0
3 years ago
Read 2 more answers
Coronado Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures w
lubasha [3.4K]

Answer:

Coronado Industries

The weighted-average accumulated expenditures are:

= $8,388,333.

Explanation:

a) Data and Calculations:

Amount borrowed on June 1 = $3,170,000

Interest rate = 13%

Outstanding 11% 3-year note payable = $6,350,000

Outstanding 12% 4-year note payable = $12,350,000

Date               Expenditure      Weight     Weighted-Average

                                                                       Expenditure

March 1          $6,370,000         10/12                $5,308,333

June 1            $5,280,000          7/12                  3,080,000

December 31 $8,650,000         0/12                    0

Weighted-average accumulated expenditure $8,388,333

7 0
3 years ago
Commercial banks are funded through which of the following?
Artemon [7]
A. Commercial banks lend mi way to consumers in the form of car loans, mortgages and personal loans. The money distributed for these loans comes from deposits of other bank customers.
3 0
3 years ago
Read 2 more answers
Most countries, including the United States, import substantial amounts of goods and services from other countries. Yet the chap
Tju [1.3M]

Answer:

The main determinant is the NET IMPORT, if the net import is higher than the net export then countries like the United States of America will have a low standard of living,while if the net export is higher than the net import then Countries like the United States of America will enjoy a high standard of living.

COMPARED TO NET EXPORTS, COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A LOWER NET IMPORT WHICH GIVES THEM A POSITIVE BALANCE OF TRADE.

Explanation: THE VOLUME OF IMPORT IS NOT THE MAIN CONCERN, THE MAIN CONCERN IS THE VOLUME OF NET IMPORT COMPARED TO THE VOLUME OF NET EXPORT COUNTRIES LIKE THE UNITED STATES OF AMERICA HAVE A HIGHER NET EXPORT THAN NET IMPORT WHICH GIVES THEM TRADE ADVANTAGE AND A POSITIVE BALANCE OF TRADE. With a good balance of trade a country like the United States of America will maintain and enjoy a high standard of living as the volume of imports is always lower than the value of what is exported.

3 0
3 years ago
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