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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.

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3 0
3 years ago
Why is it important to compute real GDP?
levacccp [35]

Answer:

C. To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next

Explanation:

Real GDP calculates the monetary value of all goods and services that a country produce within one year after adjusting it to inflation or deflation.

Knowing Real GDP often used as a measurement to find out the economic growth of a country. If the Real GDP is increased, it indicates that the people in that country become more productive and it is most likely that their disposable income is also increased.

3 0
3 years ago
Testbank Multiple Choice Question 100 Bramble Corp. purchased machinery on January 2, 2015, for $880000. The straight-line metho
ValentinkaMS [17]

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33,585.71

Explanation:

5 0
3 years ago
The _______ was a foreign policy embarrassment for the United States during the Kennedy Administration. 
mrs_skeptik [129]
The Bay of Pigs Invasion was a foreign policy embarrassment for the Kennedy Administration.
When John Kennedy assumed the presidency after Dwight Eisenhower, he was faced with the pressure to act on Cuban dictator Fidel Castro's growing relationship with the Soviet Union (yet another of US' formidable enemies).
His senior advisers urged him to authorize the attack on Cuba and initiate a movement to overthrow Fidel Castro. This played on Kennedy's foreign principle which is for Democratic countries such the US to show a strong force against dictatorships like Castro's. In April 1961, the invasion at the Bay of Pigs failed extremely. Castro was quick to mobilize his militia to counter Kennedy's botched plan. Aside from this, Kennedy made some worst decisions that nailed the coffin shut. Thus the Kennedy Administration suffered a lot of damage due to this failure. 

3 0
3 years ago
Read 2 more answers
Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If
damaskus [11]

Answer:

$412,500

Explanation:

March

Cash receipts from sales on account for April = $400,000 * 75%

Cash receipts = $300,000

April

Cash receipts from sales on account for April = $450,000 * 25%

Cash receipts = $112,500

Total Cash receipts = Cash receipts from sales on account from March + Cash receipts from sales on account from April

Total Cash receipts = $300,000 + $112,500

Total Cash receipts = $412,500

5 0
3 years ago
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