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olga_2 [115]
4 years ago
7

An express warranty is created when a seller: makes an affirmation of fact or promise concerning the goods that becomes part of

the basis of the bargain. uses descriptive terms as a part of the bargaining process, but the buyer does not take it into consideration when making the purchase. sells goods meant for use for ordinary purposes. avoids using a sample or model as the basis for the contract.
Business
1 answer:
laiz [17]4 years ago
4 0

Question:

An express warranty is created when a seller:

A) makes an affirmation of fact or promise concerning the goods that becomes part of the basis of the bargain.

B) uses descriptive terms as a part of the bargaining process, but the buyer does not take it into consideration when making the purchase.

C) sells goods meant for use for ordinary purposes.

D) avoids using a sample or model as the basis for the contract.

Answer:

The correct choice is A)

An express warranty is created in the contract when a supplier makes a promise concerning the goods that the buyer can hold on to as an incentive to purchase the product.

Explanation:

For example, if a consumer buys a Laptop online, but when it arrives the item is the wrong specifications, wrong color, or is dented or damaged in anyway, an <em>express warranty</em> might entitle the consumer to a refund or replacement.

This warranty usually is stated upfront prior to or during the execution of the sales transaction.

Cheers!

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Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00
elena-s [515]

Answer:

The flexible-budget amount is $120,000

Explanation:

The flexible-budget amount is the same lump sum as the static budget.

Therefore, The flexible-budget amount is $120,000.

5 0
3 years ago
Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: be
faust18 [17]

Answer:

Best estimate for inventory =$70,764.85

Explanation:

The closing inventory value at retail

= (Opening inventory + Purchases - sales)  all in retail prices

= $123,000 +  $483,000 - 493,000.

= 113000

Closing inventory value at cost

=113,000 ×  (64,500 + 315,000)/(123,000 +  $483,000)

=70,764.85

Best estimate for inventory =$70,764.85

4 0
3 years ago
During August, Boxer Company sells $360,000 in merchandise that has a one-year warranty. Experience shows that warranty expenses
marta [7]

Answer:

Debit Estimated Warranty Liability $12,400

Credit Warranty Expense $12,400

Explanation:

Warranty Expense = 0.04 * Total Sales

Warranty Expense = 0.04 * $360,000

Warranty Expense = $14,400

Warranty Liability Account = Warranty Expense + Opening balance of the Warranty liability Account

Warranty Liability Account = $14,400 + $12,400

Warranty Liability Account = $26,800

The business would incur actual warranty expense of $12,400.

Debit Estimated Warranty Liability $12,400

Credit Warranty Expense $12,400

4 0
3 years ago
If an economy is experiencing a recession, the classical approach to achieving full employment is to:
agasfer [191]
Build up the military 
just like how usa got out of the depression
3 0
4 years ago
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.8 million ca
Phantasy [73]

Answer:

A a) Journal Entry for Precision Castparts

Debit Bank $39.8 million Credit Note Payable $39.8 million

b) Journal Entry for Midwest bank

Debit Note Receivable $39.8 million Credit Bank $39.8 million

B a) Journal Entry for Precision Castparts

Debit Interest Expense $796,000 Credit Interest Payable $796,000

b)  Journal Entry for Midwest bank

Debit Interest Receivable $796,000 Credit Interest Income $796,000

C a) Journal Entry for Precision Castparts

Debit Note Payable $39.8 million Debit Interest Payable $796,000 Debit interest Expense $2,388,000 Credit Bank $42,984,000

b) Journal Entry for Midwest bank

Debit  Bank $42,984,000 Credit Note Receivable $39.8 million Credit Interest Receivable $796,000 Debit interest Income $2,388,000

Explanation:

Interest up to 31 Dec 2021

Interest = 39,800,000*8% = $3,184,000*3/12 =$796,000

8 0
3 years ago
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