Unsubsidized Stafford Loans:

Prepare entries to record the sale of the copiers, the related warranty costs, and any accrual on December 31, 2020. Actual warr

Reil [10]

Answer:

Computation of Sales = Price x Quantity

= $4,130 x 186 = $768,180

ENTRIES TO RECORD THE SALES

Debit cash $768,180

Credit Sales $768,180

Being sales of 186 color laser copiers at $,4,130 each

ACCRUAL FOR WARRANTY

Maintenance on each copier during the warranty period is estimated to be $355.

Total provision for warranty = 186 x $355

= $66,030

JOURNAL ENTRIES

Debit Warranty Expenses $66,030

Credit Warranty Liability $66,030

Being provision for warranty for the sales of 186 color laser copiers

ACTUAL WARRANTY COST INCURRED

JOURNAL ENTRIES

Debit Warranty Liability $17,400

Credit Inventory $17,400

Being warranty expenses paid from inventory

Explanation:

ENTRIES TO RECORD THE SALE

Total sales made is price per unit multiplied by the number sold. and the accounting entry is a debit to cash if sold on cash or a debit to receivable if sold on credit.

ACCRUAL FOR WARRANTY

Since maintenance on each copier during the warranty period is estimated to be $355, it means the total provision for warranty will be $355 multiplied by 186 to get $66,030. the journal entries will be a debit to expense for warranty and a corresponding credit to warranty provision account for $66,030

ACTUAL WARRANTY COST INCURRED

Inventory item of $17,400 was given to satisfy the warranty. To record the actual warranty cost incurred, debit warranty liability account and credit the respective inventory account for $17,400.

7 0

3 years ago

A principle purpose of the market model is to show how equilibrium price and quantity will change as a result of some 'exogenous

devlian [24]

Answer:

A classic example of exogenous shock is the oil supply shock in the 1970s.

Explanation:

At that time, the OPEC (Organization of Petroleum Exporting Countries), led by Arab countries, controlled the supply of oil in retaliation for Western policies. Controlling supply, ie decreasing production, drastically raised the price of a barrel of oil. Thus, both the quantity of equilibrium and the price and equilibrium changed in that situation due to the exogenous shock in the supply of the product.

6 0

3 years ago

Clarence is visiting his friends in Germany. Which currency will he use to pay for souvenirs?

dolphi86 [110]

If Clarence is visiting his friends in Germany, he will use euros to pay any souvenirs he buys. Other places that uses euros are Greece, Austria, Finland, and Spain.

7 0

3 years ago

Read 2 more answers

If the Fed sells $2 million of bonds to the First National Bank, what happens to reserves and the monetary base?

Sindrei [870]

Answer:

Reserves fall by $2 million, and the monetary base falls by $2 million.

Explanation:

In the books of First National Bank, the purchase of $2 million of bonds by First National Bank, from the Federal Reserve means there is a reserve with the Federal Reserve represented by security which stands as asset.

In the books of the Federal Reserve, The sales of bonds to First National Bank will create a liability from the reserve assets.

See attached for the T-accounts explain the answer

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4 0

3 years ago

The general manager of a clothing store recently gave a motivational PowerPoint presentation to his employees on the value of be

Pavel [41]

Answer:

Leading.

Explanation:

In this scenario, the general manager of a clothing store recently gave a motivational PowerPoint presentation to his employees on the value of being courteous to each customer. The manager’s behavior is an example of leading. When you're a leader, you are saddled with the responsibility of controlling, influence, administering, guiding and dealing with the affairs of the employees working within the organization.

Generally, leadership entails setting the vision, goals and direction for the organization, as well as motivate the employees (team) to do the right thing and acting responsibly.

5 0

3 years ago