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Alexxandr [17]
3 years ago
9

​Hunter's Home Remodeling had cash sales for the month of May totaling​ $43,700. Hunter offers a 1−year warranty on its construc

tion services. If Hunter estimates warranty claims will equal​ 6% of​ sales, what is the journal entry to record the estimated warranty expense for the​ month?
Business
1 answer:
Angelina_Jolie [31]3 years ago
6 0

Answer:

warranty expense      2,622 debit

        warrant liability                       2,622 credit

Explanation:

it will declare a warranty liability equal to the expected cost of the warrant. This is done to match the expenses with the time they occur.

Because, the warrants will be claimed in the subsequent years or the sales made this period.

warrant liability/expense:  43,700 x 6% = 2,622

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Given the following data: Average operating assets $ 504,000 Total liabilities $ 23,520 Sales $ 168,000 Contribution margin $ 85
kipiarov [429]

Answer:

9%

Explanation:

According to the given situation, the solution of return on investment is shown below:-

Return on investment = (Net operating income ÷ Average operating assets) × 100

now, we will put the values into the above formula

= ($45,360 ÷ $504,000) × 100

= 0.09 × 100

= 9%

Therefore for computing the return on investment we simply applied the above formula.

7 0
3 years ago
Stock options A. allow you to pay people only​ $1 in salary. B. force CEOs to try and maximize the share price in the short run.
Ipatiy [6.2K]

Answer:

The answer is C.

Explanation:

Stock options a type of contingent reward given to CEOs, top management or atimes workers of a company as an incentive to align their goals with the goals of the shareholders. Most times, the goals of management is different from goals of the shareholders. These people are called option holders.

Stock options are priced at a particular share price. If the share price for the company is within the range of the stock options price, the management will exercise this option.

6 0
3 years ago
A monopolistically competitive market A. is imperfectly competitive, and all imperfectly competitive markets are monopolisticall
Gala2k [10]

Answer:

D. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive.

Explanation:

Monopolistic competition may be seen as a variety of competition that determine the characteristics of variety of industries that are familiar to consumers in their day-to-day lives. For instance, restaurants, hair salons, clothing, and consumer electronics are all monopolistic competitive market but not all imperfectly competitive markets are monopolistically competitive.

4 0
3 years ago
Read 2 more answers
A rapid increase in the money supply may lead to a(n):
diamong [38]
<span>A rapid increase in the money supply may lead to a "Deflation"

Hope this helps!
</span>
8 0
3 years ago
Amber Devices Ltd. has total assets worth $900 million and total liabilities worth $475 million at the end of December 31. What
natima [27]

Answer:

The current total assets of Amber devices are $900 million

IF they sell all their assets for 850 million they will have 850 million in cash. From this cash they have to pay their liabilities first, so

850 million -475 million =  375 million

The book value of the liabilities was 475 million and because Amber devices pays of all its outstanding debt at book value, the remaining cash left for the stock holders is 375 million

The stock holder receive $375 million after liquidation of assets and payment of debt.

Explanation:

6 0
4 years ago
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