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PIT_PIT [208]
3 years ago
12

Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience

, Waymire estimates that 3% of units sold each period will require repair at an average cost of $100 per unit. During the current period, Waymire sold 73,000 units and repaired 1,000 units.
(a) How much warranty expense must Waymire report in its current period income statement?(b) What warranty liability related to current period sales will Waymire report on its current period-end balance sheet?
Business
1 answer:
MA_775_DIABLO [31]3 years ago
3 0

Answer: Income statement $100,000

Balance sheet warranty liability $Nill

Explanation:

Since we are at the end of the period and all activities has been concluded with no expectation of claim of repairs. The firm will only record the cost incurred for current period on repairs which is $100,00 ( $100*1000) . The liability will be zero since the company has taken care of all repairs for the period.

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soldier1979 [14.2K]

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The correct answer is letter "B": Entity.

Explanation:

The Accounting Entity principle or Economic Entity principle states that a commonly co-owned group of businesses can entitle to be a single entity with the purpose to generate a consolidated financial statement. A business entity could be considered to be a sole proprietorship, partnership, or corporation.

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3 years ago
Merger and acquisition strategies
aniked [119]

Answer: Option (E)

Explanation:

Merger strategies are usually undertaken by an organization in order to form a strategic merger with several other organizations so as to accelerate the growth, instead of growing organically. Acquisition strategy tends to involves the finding methodology for acquisition of the target organization which generates the value for acquirer.

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3 years ago
The journal entry to transfer completed products from production to finished goods inventory includes which two of the following
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Answer:

Debit finished goods inventory

Credit Work in Process Inventory

Explanation:

The journal entry that is required to transfer the completed products from the production stage to finished goods inventory which is the amount of goods in the inventory that have been produced and as well is available and ready for customer to buy will includes to Debit finished goods inventory and to Credit Work in Process. Inventory

Debit finished goods inventory

Credit Work in Process Inventory

(Being to record finished goods inventory)

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3 years ago
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vlada-n [284]

Answer:

value

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Opportunity cost or implicit is the value of the option forgone when one alternative is chosen over other alternatives.

For example, if I leave by job where i earn $100,000 per year to study economics in college. My opportunity cost is $100,000. This is the amount i would have been earning if i didn't go to college

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A disadvantage of adding a salad bar to a school lunch menu would be ?
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The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
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