Answer:
Warranty Expense (Debit) $3,960
Warranty Liability (Credit) $3,960
Explanation:
The principle we apply while making entries for standard warranty is this:
The <u>estimated amount of warranty expense</u>, <em>which a company founds as a percentage of its sales from historical claims and data</em>, is taken as benchmark to accrue the warranty expense in the period when the sale is made <em>(matching principle) .</em>
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In our question, 4.5% is the estimated warranty expense.
The company then sets off the estimated warranty expense (Debit)
(<em>4.5% * $88,000 = $3,960</em>)
with the warranty liability (Credit) to entertain any claims in future.
Answer:
4. compounding daily
Explanation:
The higher the compounding rate , the higher the compound interest. Compounding daily would therefore yield the highest amount of money.
I hope my answer helps you
1. Critical Thinking
2. Project Management
3. Analytical Skills
4. Holistic Approach
5. Technical Skills
Answer:
$38.40
Explanation:
Target Cost = Selling Price per Unit - Profit Margin per Unit
Here, Selling Price per Unit = $40
Profit Margin = 16% of the Investment in Product
Investment = $ 300,000
Profit Margin = 16% × 300,000
= $48,000
Number of Units Sales = 30,000 Units
Profit Margin per Unit:
= Profit Margin ÷ Number of Units Sales
= $48,000 ÷ 30,000
= $1.6
Therefore,
Target Cost per Unit:
= Selling Price per Unit - Profit Margin per Unit
= $40.00 - $ 1.60
= $38.40
D. Square your shoulders before entering the room.
