Effective customer service efforts:

The following three independent sets of facts relate to contingent liabilities: 1. In November of the current year an automobile

aalyn [17]

Answer:

Situation 1 is a probably contingency. This recall is occurring and can be estimated as costing $2 million. This amount should be charge to the warranties payable and warranties expense accounts.

Date

Particulars

Ref.no

Debit $

Credit $

Warrantee expenses

20,00,000

Warranty payable account

20,00,000

[To record the estimated claims]

Comment

Step 3 of 3

Situation 2 is a reasonable contingency. The costs are possible and there are rough estimates for cleanup but there are also rough estimates about reimbursements for property damage. This situation would be disclosed on the balance sheet.

Situation 3 is a remote contingency. There is a small change that there could be property damage but there is no way to determine how much or what the costs could be. There is no amount marked down for this situation

Explanation:

5 0

3 years ago

The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes

kari74 [83]

Answer:Please see answers in explanation column

Explanation:

a) Journal to record factory labor cost

Account titles and explanation Debit Credit

Factory Labor $480,000

Factory wages payable $400,000

Employer payroll taxes payable $80,000

Factory Labor=Factory wages payable+Employer payroll taxes payable

= $400,000 + $80,000 =$480,000

b) Journal to transfer factory labour to production

Account titles and explanation Debit Credit

Work in process inventory(480,000 x 75%) $360,000

Manufacturing Overhead(480,000 x 25%) $120,000

Factory Labor $480,000

3 0

3 years ago

What is accounting

andre [41]

Answer:

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows. Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and presenting the results in various reports and analyses. Accounting is also a field of study and profession dedicated to carrying out those tasks.

Explanation:

4 0

3 years ago

Define interest rates and explain how they have changed since March 2020. What impact have these changes had on businesses?

Masja [62]

Answer:

When interest rates change, there are real-world effects on the ways that consumers and businesses can access credit to make necessary purchases and plan their finances. It even affects some life insurance policies. This article explores how consumers will pay more for the capital required to make purchases and why businesses will face higher costs tied to expanding their operations and funding payrolls when the Fed changes the interest rate. However, the preceding entities are not the only ones that suffer due to higher costs, as this article explains.

Explanation:

5 0

3 years ago

Which is the best timeline entry based on the information above (1 point)?

dlinn [17]

1837 Douglass joined the East Baltimore Improvement Society.

5 0

3 years ago

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