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Gwar [14]
3 years ago
13

A company has a selling price of $1,800 each for its printers. Each printer has a 2 year warranty that covers replacement of def

ective parts. It is estimated that 2% of all printers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 printers, and 400 printers were serviced under the warranty. What is the company's warranty expense for the month of November
Business
1 answer:
Afina-wow [57]3 years ago
8 0

Answer:

$90,000

Explanation:

Data given in the question

Selling price = $1,800

Estimated percentage = 2%

Average cost = $150

Number of printers sold = 30,000

Under the warranty, the printer under service = 400

So by considering the above information, the warranty expense is

= Number of printers sold × estimated percentage × average cost per printer

= 30,000 × 2% × $150

= $90,000

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Answer:

$0.37

Explanation:

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2 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $74,000 and $3,900, r
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Answer:

The 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

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The non-collectible accounts expenses on its Year 2 income statement is shown below:

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Hence, the 9,300 should Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement

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3 years ago
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Promissory Notes Receivable

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2 years ago
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A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to
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The statement,"A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts" is True .

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A retailer such as Wal-Mart, which has its own products, is an example of vertical integration. This owns the inventory, manages the distribution and is the seller. Because it splits the guy in between, the company will deliver a much lower price, such as the brand name drug.

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