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leva [86]
3 years ago
14

Hitzu Co. sold a copier (that costs $4,500) for $9,000 cash with a two-year parts warranty to a customer on August 16 of Year 1.

Hitzu expects warranty costs to be 6% of dollar sales. It records warranty expense with an adjusting entry on December 31. On January 5 of Year 2, the copier requires on-site repairs that are completed the same day. The repairs cost $114 for materials taken from the repair parts inventory. These are the only repairs required in Year 2 for this copier. Based on experience, Hitzu expects to incur warranty costs equal to 4% of dollar sales. It records warranty expense with an adjusting entry at the end of each year.
Required:
a. How much warranty expense does the company report in 2015 for this copier?
b. How much is the estimated warranty liability for this copier as of December 31, 2015?
c. How much warranty expense does the company report in 2016 for this copier?
d. How much is the estimated warranty liability for this copier as of December 31, 2016?
Business
1 answer:
Makovka662 [10]3 years ago
7 0

Answer:

Explanation:

Requirement 1

Warranty expense in 2015 = $9,000 x 6%

Warranty expense in 2015 =  $540

Note: As mention above Hitzu expects warranty cost to be 6% of dollar sales

Requirement 2

Estimate warranty liability as of Dec 2015 = $540

Requirement 3

Warranty expense in 2016 = 0

Requirement 4

Estimated warrant liability as of Dec 2016 = $540 -$114

Estimated warrant liability as of Dec 2016 = $426

Note: As the repair costs 114 on the same day of repair.

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klasskru [66]

Answer:

$80,000

Explanation:

The computation of allocation labeling expenses is shown below:-

Overhead rate = Labeling process cost ÷ Labels generated

$320,000 ÷ $640,000

= $0.5 per label

Allocation labeling expenses = Wine estimated bottles × Overhead rate

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Therefore for computing the allocation labeling expenses we simply applied the above formula.

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If compound interest and the time value of money can work for you in investments , how can it work against you in debt, like wit
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Answer:

Debt isnt always the right choice

Explanation:

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6 0
3 years ago
How to calculate APS?
anyanavicka [17]
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5 0
3 years ago
Keeping current with the changes in the marketplace is often a real challenge to marketers, as sometimes changes must take place
Elena-2011 [213]

Answer: Please refer to Explanation

Explanation:

1. More customers are indeed purchasing online in this ever developing technological scene in this 21st century. One just has to look at the value of Amazon with it's over a trillion dollars market Capitalization. They have cornered the online scene and are reaping the benefits.

Things are looking quite bleak for offline retailers because these online stores offer one great thing, Convenience. Along with that they offer things like discounts and free delivery.

To reverse the trend that online stores have, offline retailers need to MATCH the SERVICES they OFFER as well as CAPITALIZE on the services they DON'T OFFER.

For instance, online stores do not have that personal touch of a sales person guiding them and explaining the perks of a product. In essence, retailers should work on their CUSTOMER SERVICE. They should treat customers in such a way that the customers would always want their assistance when buying things and would not mind coming all the way to the store to buy it. This is one way to hit them in places they don't offer services in.

Then you can also hit them in areas they rule. Such as opening a small website and marketing your goods. The world is moving online and to avoid it is death. Make a small website that has your products and offer delivery services coupled with telemarketing to explain anything needed.

.

.

.

2. Brick and Mortar stores are still very important even in this day and age. With Brick and Mortar stores things like trust are easier to establish. This is because when you come to buy your goods you can touch them, you can see and smell them, you KNOW what you ARE BUYING. With online sites you can sometimes buy something and another thing arrives and returning it can be a hassle. With Brick and Mortar stores you can buy knowing that you bought what you saw you wanted and even if you want to return it you can.

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5 0
3 years ago
Washington Inc. issued $846,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $9,
Aleonysh [2.5K]

Answer:

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Loss on retirement on Bond = $862,920 - $838,920

Loss on retirement on Bond = $24,000

4 0
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