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Rudik [331]
3 years ago
14

Scout Company sold $15.000 of merchandise in September with a three-month warranty. The cost to repair defects under warranty is

estimated at 5% of the sales price. The journal entry to record the estimated warranty expense for the month of September will include a
a. debit to Product Warranty Expense for $750
b. credit to Product Warranty Expense for $750.
c. debit to Product Warranty Payable for $7,500.
d. credit to Product Warranty Payable for $7.500.
Business
1 answer:
chubhunter [2.5K]3 years ago
8 0

Answer: debit to Product Warranty Expense for $750

Explanation: 5% of $15000 =

5 ÷ 100 × $15000 is $750.

This is an expense and so will be a debit.

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The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work
I am Lyosha [343]

Answer:

Preparation of the adjusting entries as of December 31, 2015.

Dr Salaries Expense 3,920

Cr Salaries Payable 3,920

Explanation:

Since we were been told in the question that all the 15 employees worked the first 2 days of that week, the Adjustment we therefore be $3,920( 1,960×2) . And the transaction will be recorded as:

Dr Salaries Expense 3,920

Cr Salaries Payable 3,920

The Adjustment will be :

1,960 x 2 = 3,920

Therefore the pay that occured in New Year's Day will not be used because it falls in the next year.

4 0
3 years ago
Mortimer loves sushi. he loves sushi so much that he asks his congressional representative to work for passage of a binding pric
Flauer [41]

First option.

Indeed, some people may benefit by paying the artificial price, but not all as other people may not be able to satisffy all their demand as a price ceiling will also effectively create a shortage due to the low prices disincentivizing producers.

8 0
3 years ago
ABC, a U.S. company sends by fax an offer to sell to XYZ, a French company, 1,000,000 widgets for $1.00 a widget. XYZ sends back
galben [10]

Answer:

The correct option is B. False.

Further explanation is given below in the explanation section.

Explanation:

Offer From ABC Company to XYZ Company:

1,000,000 widgets to sell.

Selling Price of 1 widget = $1.00

Total Price = $1,000,000

Counter Offer from XYZ company to ABC Company.

Selling Price = $0.75

Total Price = 0.75 x 1,000,000 = $750,000

But in the end, ABC company sold its widgets to GHK company.

The correct option to this question is false.

This case is false because here ABC sends an original offer of $1 but XYZ sent a counter offer of $0.75. This counter offer was then duly rejected by ABC.

XYZ cannot again confirm and accept the original offer of ABC because they have already rejected your claim and thus XYZ have to wait until ABC make them another offer.

5 0
3 years ago
What is an entitlement?
madam [21]

Hey! Let's do this together.

An entitlement is a provision made in accordance with a legal framework of a society.

That shows us that we can sum up our answer to "A".

Hopefully you understand, if not we can work on it some more :)

Thanks for using Brainly!

6 0
3 years ago
Read 2 more answers
The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $7,00
irga5000 [103]

Answer:

the inventory should be recorded at $8,500

Explanation:

As we know that according to GAAP, the inventory should be recorded at a cost or net realizable value whichever is lower

So as per the question

Historical cost is $12,000

And, the net realizable value is

= Expected selling price - expected selling cost

= $9,000 - $500

= $8,500

So, the lower cost is $8,500

Hence, the inventory should be recorded at $8,500

5 0
3 years ago
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