1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spayn [35]
3 years ago
7

Palmer Music manufactures and sells MP3 players and sound systems that include a 180-day warranty on product defects. The compan

y also sells 2-year extended warranties. On May 10, Palmer sold a sound system for $3,850 and an extended warranty for another $1,200. What should be included in the journal entry used to record this transaction?
Business
2 answers:
andre [41]3 years ago
8 0

Answer:

Explanation:

Palmer Music manufactures and sells MP3 players and sound systems that include a 180-day warranty on product defects. The company also sells 2-year extended warranties. On May 10, Palmer sold a sound system for $3,850 and an extended warranty for another $1,200.

What would be included in the journal entry to record this transaction is

Dr. Cash (3850+1200)...........5,050

Cr. Sales..............................................3,850

Cr. Prepaid Income (Warranty).......1,200

The warranty amount will not be included in the sale amount because it has not been earned, it will only be earned after the expiration of the warranty period.

sergey [27]3 years ago
7 0

Answer:

Dr Cash 5,050

    Cr Sales revenue 3,850

    Cr Deferred warranty revenue 1,200

Explanation:

The deferred warranty revenue account is a liability account used to record unearned revenue which will be earned over the life of the warranty. Since the extended warranty covers a two year period, deferred revenue will decrease by $50 per month and warranty revenue will be accrued.

You might be interested in
The situation where the quantity supplied of a good is greater than the quantity demanded at
aliina [53]

Answer:

Excess supply

Explanation:

Demand is the quantity required or requested by buyers while supply is the quantity of a good that a producer is able to supply to the buyer.

When demand is equal to supply there is equilibrium and no excess in demand or supply.

However when the amount supplied exceeds the demand for a product there will be excess product in the market. This is called excess supply.

Conversely when the quantity demanded is more than that supplied it is excess demand

8 0
3 years ago
When riley comes to the united states to take a job, he is surprised that his co workers conduct business lunches with their cli
xxTIMURxx [149]
Riley like comes from a high-text culture. High-context cultures rely heavily on implicit and heavy context when conducting business. Implicit communication are comments that are hinted to someone or about something but do not directly imply what they are meaning. There is no fun and play in business and business is taken seriously when in an office setting only. 
7 0
3 years ago
Prairee partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of
NemiM [27]

Answer:

mack tax basis in prairee on 31 december = 307000

correct option is a. $307,000

Explanation:

given data

tax basis = $320,000

net business income = $152,000

services rendered = $4,000

distribution = $50,000

solution

we know allocated income is here

allocated income = net business income - guaranteed payment

allocated income = 152000 - 4000

allocated income = 148000

so

mack share of net income is 25 % of allocated income

mack share of net income = 37000

so

mack tax basis in prairee on 31 december = 320000 + 37000 - 50000

mack tax basis in prairee on 31 december = 307000

7 0
3 years ago
The National Recovery Administration (NRA) failed largely because a Harold Ickes, the head of the agency, proved to be an incomp
Licemer1 [7]

Answer:

b. it required too much self-sacrifice on the part of industry, labor, and the public.

Explanation:

Franklin Delano Roosevelt was an American politician and statesman who was elected as the 32nd President of the United States of America in 1933. He was born on the 30th of January, 1882 in Hyde Park, New York, United States of America.

The National Recovery Administration (NRA) was an agency of the federal government of the United States of America, which was established in 1933 by President Franklin Delano Roosevelt.

The main purpose of the National Recovery Administration (NRA) was to stimulate, enhance or facilitate business recovery, promote compliance and reduce unemployment significantly

However, the National Recovery Administration (NRA) failed largely because it required too much self-sacrifice on the part of industry, labor, and the public.

5 0
3 years ago
On January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On Mar
saveliy_v [14]

Answer:

b. Net Income

e. Cash from Investing Activities

Explanation:

Calculation to determine Which of the following items would be increased by the sale of the marketable securities

Using this formula

Gain from investment = Selling price of the security - Value of the security

Let plug in the formula

Gain from investment= $93,000 - $85,000

Gain from investment= $8,000

Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.

Therefore the items that would be increased by the sale of the marketable securities are :

b. Net Income

e. Cash from Investing Activities

4 0
3 years ago
Other questions:
  • Wayne Corporation owns 40% of the stock of Robin Corporation and 90% of the stock of Bat Corporation. All of the corporations ar
    13·1 answer
  • Your project sponsor has asked you to explain the negative or threat risk response strategies and the opportunity or positive ri
    14·1 answer
  • (5). The variance of Stock A is .005, the variance of the market is .008 and the covariance between the two is .0026. What is th
    11·1 answer
  • Which of the following items would be a way to manipulate the cash flow from operating activities amount on the statement of cas
    5·2 answers
  • Scientists who have a financial stake in a company are now required to state that when they do research. this is an example of
    13·1 answer
  • Jeff and Bill’s business is well received. However, they must quickly make a major change or the business will fail.
    5·1 answer
  • Charles heads the human resource department at technology development company Schultz Inc. There, he monitors trends of the labo
    7·1 answer
  • Given the following data: Average Operating Assets $250,000 Total Liabilities $100,000 Sales $600,000 Contribution Margin $150,0
    9·1 answer
  • What is it called whenever there<br> is no shortage or surplus in the<br> market?
    8·2 answers
  • Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310. If the ta
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!