1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Select the items below that are examples of things that could use the smart card
kogti [31]
What are the items?
3 0
3 years ago
Explain how each of the following transactions generates two entries—a credit and a debit—in the American balance of payments ac
ANEK [815]

Answer:

Explanation:

A. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. - Credit Swiss bank and Debit Capital account as purchase of German Stock

B. An American buys a share of German stock, paying the seller with a check on an American bank. Credit American bank and Debit Capital account as purchase of German Stock

C. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. Credit American bank and Debit Capital account as foreign currency exchange

D. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. Credit Traveler's check (Current Account) and Debit Currency transfer (payment for service)

E. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting. it has no financial implication as its a donation.

F. A U.S.-owned factory in Britain uses local earnings to buy additional machinery. No entry as the transaction has nothing to do with country's asset.

8 0
3 years ago
What do points do in Brainly?<br> Can you earn anything with them?
Maksim231197 [3]

Basically the points help get you static up i guess, I'm not sure.

5 0
3 years ago
Read 2 more answers
Which of the following describes the product portfolio under Amina? a. Sleekline-question mark, Stallion-star, Thunderbird-cash
Serhud [2]

Complete Question:

Amina Begum the Vice President (Sales) of MGT 460 Inc. manages a portfolio of three products in the computer division. The new Intel M ULV 773 processor-based Sleekline model has a low market share of around 5%, but has just been introduced, and since the market is booming, Amina is hopeful that it will grow into maturity. Stallion, the Xenon-based system, has a market share of 88% in the industry segment it operates in, but the market is stable and not growing too fast. Finally, there is the Pentium 4-based Thunderbird, which only sells in discount markets in rural areas. Which of the following describes the product portfolio under Amina?

A. Sleekline-question mark, Stallion-star, Thunderbird-cash cow

B. Sleekline-question mark, Stallion-cash cow, Thunderbird- dog

C. Sleekline-Star, Stallion-cash cow, Thunderbird-dog

D. Sleekline-question mark, Stallion-dog, Thunderbird-cash cow

Answer:

Option B. Sleekline - Question mark, Stallion - cash cow, Thunderbird - dog

Explanation:

The Boston Consulting Group matrix says that question mark is the business unit that has just been introduced and the future of the company is unknown which is the case of Sleekline.

The Cash Cow is the company has significant market share and its growth is static due to the maturity phase of the market which is the case of Stallion.

The Dog is the company that has declining market share and will be out of the market because they don't have significant resources as well and in this question the Thunderbird is the one with falling sales and lower resources due to the fall in the resources.

6 0
3 years ago
Read 2 more answers
What are things you can do to manage the risks in your life to reduce any financial losses?
meriva
Spend carefully use discounts monitor your spending create list on how much you spend etc.
5 0
3 years ago
Read 2 more answers
Other questions:
  • If your total assets arw $3,940 and your total liabilities are $1,232 what is your total net worth
    12·1 answer
  • When a person declares bankruptcy that fact will appear on the person?s credit report ??
    12·1 answer
  • How is the standard of living measured?
    15·1 answer
  • These often managerial level decisions occur in situations in which a few established processes help to evaluate potential solut
    9·1 answer
  • Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and re
    8·1 answer
  • A Registered Investment Adviser plans on offering options strategies as part of his services. For this added investment strategy
    7·1 answer
  • Messing company has an agreement with a third-party credit card company, which calls for cash to be received immediately upon de
    11·1 answer
  • Determine whether each of the following examples would be included in Gross Domestic Product (GDP). a. When Judy went to the gro
    13·1 answer
  • Free brainly anyone wants one ??
    15·2 answers
  • If you are e-filing your tax returns, explain why it is beneficial to file your federal and state taxes through the same e-filin
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!