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pav-90 [236]
3 years ago
13

A company has a selling price of $2,000 each for its printers. Each printer has a 2 year warranty that covers replacement of def

ective parts. It is estimated that 3% of all printers sold will be returned under the warranty at an average cost of $154 each. During November, the company sold 34,000 printers, and 440 printers were serviced under the warranty at a total cost of $59,000. The balance in the Estimated Warranty Liability account at November 1 was $31,000. What is the company's warranty expense for the month of November?
Business
1 answer:
pychu [463]3 years ago
6 0

Answer:<em><u>The company's warranty expense for the month of November is $157,080. </u></em>

Explanation:

When the estimated amount is recognized-

Warranties expense A/c (Dr.) =  $157,080

Estimated Warranty Liability (Cr.) = $157,080

When the repairs are actually paid, Estimated Warranty Liability will be Debited and Cash will be credited.so, The company's warranty expense for the month of November is $157,080.

<em><u>i.e. (34,000 × 3% × $154 = $157,080)</u></em>

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At 6.5 percent interest how long does it take to double your money to quadruple it
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3 years ago
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In the equation of exchange, M x V = P x Q, the P represents ___________________.
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Answer:

P in the equation represents Price level

Explanation:

The equation above is referred to as the equation of exchange.

M = money supply, V= velocity of money, P= price level and Q= real output (real GDP)

P × Q gives the nominal GDP while M×V is the effective money supply.

The total value of goods and services available in the economy (represented by the nominal GDP) is equals to the total amount of money available to purchase them (the effective money supply.

The velocity of money is the rate at which money been is used or spent for transaction purposes in the economy. It is assumed to be constant.

For example, If there exist only a $1000 note in the economy, this amount just needs to be spent once to purchase a total nominal GDP of $1000. However, if there exist just one $500 note, then it means the $500 will need to be spent 2 times to purchase the total value of goods worth $1000. The 2 is the velocity of money

This equation is also used to explain the concept of the quantity theory of money.

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3 0
3 years ago
PE and Terminal Stock Price [LO2] In practice, a common way to value a share of stock when a company pays dividends is to value
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Answer:

$150.15

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