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astraxan [27]
3 years ago
8

All of the following statements related to recording warranty expense are true except: Multiple Choice Recording estimated warra

nty expense requires a debit to Warranty Expense. Warranty expense should be recorded in the period when the warranty service is performed. Estimated warranty expense is recorded when revenue from the sale of the product or service is reported. The seller reports a warranty obligation as a liability. Warranty costs are probable and the amount can be estimated.
Business
1 answer:
wel3 years ago
5 0

Answer:

<em>Warranty expense should be recorded in the period when the warranty service is performed.</em>

Explanation:

When the product is sold, a product guarantee liability and warranty cost should be reported if it is possible that consumers may make claims under the warranty and the amount can be calculated.

Those two provisions are part of the Financial Accounting Standards Statement No. 5 of the FASB, Accounting for Contingencies.

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Answer:

a.a debit to Cash Dividends for $120,000.

Explanation:

The amount of dividend paid is dependent on two function; the number of shares and the amount declared for payment per share.

When it is paid, a credit is posted to cash account and the corresponding debit is posted to the dividend paid account.

As such, since the company has  80,000 shares and the declared dividend  was $1.50,

Total dividend paid = $1.50 × 80000

= $120,000.

Hence cash dividend is debited with $120,000 on payment.

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3 years ago
Having just one typo on your resume can eliminate you from a job pool
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The only real difference is that if Taylor decides to assume the mortgage, he will need a smaller initial cash flow ($150,000).

8 0
3 years ago
When starting a new job the form you complete to determine how much tax to withholding from your paycheck is called the
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