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grigory [225]
3 years ago
8

During june, vixen company sells $850,000 in merchandise that has a one year warranty. experience shows that warranty expenses a

verage about 3% of the selling price. customers returned $14,000 of merchandise for warranty replacement during the month. the entry to record the estimated warranty provision at the end of the month is:
Business
1 answer:
Musya8 [376]3 years ago
4 0

Answer:

Explanation:

The journal entry is shown below:

Warranty expense A/c Dr $25,500

        To Estimated warranty liability $25,500

(Being the estimated warranty provision is recorded)

The computation is shown below:

= Merchandise sale value × given percentage

= $850,000 × 3%

= $25,500

Simply we debited the warranty expense and credited the estimated warranty liability so that the correct posting can be done.

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Answer and Explanation:

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When EPS is higher than analyst prediction,

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3 years ago
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6 0
2 years ago
If the price of pants increases, what would you expect would happen in the market for pants?
worty [1.4K]

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Acc. to the law of supply as price of a good rises the sellers will supply more units of the good. This is represented by a movement up along the supply curve.

At the increased price, there will be a surplus in the market given by Q's - Q'd.

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6 0
3 years ago
Read 2 more answers
Tim's Tools just issued a dividend of $2.22 per share on its common stock. The company is expected to maintain a constant 2.8 pe
LekaFEV [45]

Answer:

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4 0
3 years ago
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