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Colt1911 [192]
3 years ago
11

During 2016 Green Thumb Company introduced a new line of garden shears that carry a two-year warranty against defects. Experienc

e indicates that warranty costs should be 2% of net sales in the year of sale and 3% in the year after sale. Net sales and actual warranty expenditures were as follows:
Net
sales Actual warranty expenditures
2016 $ 45,000 $ 1,000
2017 120,000 3,500

At December 31, 2017, Green Thumb should report as a warranty liability of:

a.$900

b.$1,250

c.$3,750

d.$4,500
Business
1 answer:
mojhsa [17]3 years ago
4 0

Answer:

c. $3,750

Explanation:

Green Thumb Company provides two years warranty for any product defect. The provision needs to be made for the warranty expense and it should be reported in the balance sheet as warranty liability. The company budgets the warranty expense to be 2% in year of sales which is $2,400 ($120,000 * 2%) and 3% in the year after sale which is $1,350 ($45,000 * 3%). The total warranty liability for the year 2017 which will be reported at December 31, 2017 is $3,750.

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Providing and recording documents are performed by:____________.
postnew [5]

Providing and recording documents are performed by : The closing agent

<h3>Who is a closing agent?</h3>

Closing agents are basically professionals who acts directly for the buyer by making interest of the buyer known to the seller. They are usually associated with real estate transactions.

A closing agent could be a lawyer speaking to a bank or lender. The actual closing is conducted by a closing agent who might be a worker or employee of the lender or the title company or organization.

Other duties of a closing agent are :

  • Ordering title work and a property survey.
  • Issuing commitment title.
  • Assisting with obtaining requisite insurance
  • Issuing and sending the title insurance policy to both the buyer and lender
  • Assembling the loan closing package .

Therefore, closing agent responsible for providing and recording documents.

Learn more about closing agent here : brainly.com/question/8023863

5 0
2 years ago
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 390,
Novay_Z [31]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the unitary costs:</u>

Direct materials= 390,000/180,000= $2.17

Direct labor= 261,000/180,000= $1.45

Variable overhead= 235,000/180,000= $1.31

<u>Now, we determine the new costs:</u>

Direct materials= 2.17*1.2= $2.604

Direct labor= 1.45*1.04= $1.508

Fixed overhead= 851,000*1.1= $936,100

<u>Total cost for 144,000 units:</u>

Total cost= 144,000*(2,604 + 1,508 + 1.31) + 936,100

Total cost= 144,000*5.422 + 936,100

Total cost= $1,716,868

<u>Finally, the unitary cos for both years:</u>

Last year= 2.17 + 1.45 + 1.31= $4.93

This year= $5.422

7 0
3 years ago
In the united states, say gasoline costs consumers about $2.50 per gallon. in italy, say it costs consumers about $6 per gallon.
Nata [24]
What are the answer choices?
7 0
3 years ago
When Britney was talking with a car salesperson regarding a lease agreement, she learned she would have to make an initial payme
professor190 [17]

Answer:

Acquisition fee

Explanation:

Acquisition fee is paid to start the application process because the bank or the lessor is concerned about the security fees that must be paid to protect its position. These security fees are paid to company because in time of default the fee covers the installment payment and helps the bank to recover some amount as part of its recovery plan. This security fee is recoverable at the end of the period and the processing fee is not recoverable (Usually).

3 0
3 years ago
Consider a public policy aimed as e-cigarettes. Assume the elasticity of demand is 0.4. If a Juul with two pods cost $40.00 and
Iteru [2.4K]

In order to reduce the Juuling by 20%, price would have to rise by 50%.

<h3>What is price elasticity of demand?</h3>

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one.

<h3>What should be the percentage rise in price?</h3>

0.4 = 20%/ price

price = 20% / 0.4

= 50%

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

6 0
2 years ago
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