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Yuliya22 [10]
3 years ago
6

Analyzing and Computing Accrued Warranty Liability and Expense Canton Company sells a motor that carries a 60-day unconditional

warranty against product failure. From prior years' experience, Canton estimates that 3% of units sold each period will require repair at an average cost of $160 per unit. During the current period, Canton sold 100,000 units and repaired 2,400 of those units. (a) How much warranty expense must Canton report in its current period income statement? (b) What warranty liability related to current period sales will Canton report on its current period-end balance sheet?
Business
1 answer:
White raven [17]3 years ago
8 0

Answer:

a. Warranty expense $480,000

b.  Warrant liability $96,000

Explanation:

Solution-a

Warranty expense = 3%*100,000*$160

Warranty expense = $480,000

Solution-b

Warranty liability = $480,000 -($160*2,400)

Warranty liability = $96,000

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No

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An independent contractor is not bound to work specific hours dictated by an employer. When the sale's agent finds it difficult to close a deal or is unable to produce paperwork in a timely fashion, he cannot just be arbitrarily penalized by the broker. The broker could terminate the contract if the agent does not meet up to his requirements.

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3 years ago
Which of the following is an argument for free trade?
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i think it's" B" , from the explanation!

Explanation:

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3 years ago
Suppose the economies of China and India have begun to slow down very rapidly. Based on this scenario
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Answer:

The correct answer is C

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If the economies of the India and the China, will be slow down, then the loanable funds as well as the interest rates will increase because the money for liquidity will be negligible which lead to competition among using the money for personal consumption or to delay the consumption through lending the money out.

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Twilight Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivab
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Answer:

a.                          Acct. receivable   % uncollectible   Est. uncollectible

1-30 days old           $63,000                      3%                    $1,890

31-90 days old         $12,000                      14%                   $1,680

> 90 days old           $5,000                       37%                  <u>$1,850</u>

                                                                   Total                   <u>$5,420</u>

b. Date   General journal                                         Debit    Credit

Dec 31    Bad debts expenses                                $5,150

                      Allowance for doubtful accounts                   $5,150

              ($5,420 - $270)

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Increase in profit.

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