Answer: $651,000
Explanation:
From the above question, Apple's iPod carries a two-year warranty against manufacturer's defects.
warranty costs are expected to be approximately 3% of sales.
Total sales are $30.7 million, and actual warranty expenditures are $270,000.
Total warranty cost = $30.7 million x 3% = $921,000
During the 1st year only $270,000 of warranty expenses was made.
Therefore the company will carry as liability at the end of the year a total of $921,000 - $270,000 = $651,000
A larger company can benefit from <em>economies of scale</em>, meaning they can get discounts by purchasing and producing in bulk which a smaller company wouldn't have the ability to do. A larger store also has the potential for higher revenue because they have more goods and services to sell.
The negative impacts of E-commerce includes privacy, security,price wars, returns of products and Complaints. E-commerce allows convenient methods to pay online. However, there is a risk of Security.
<u>Explanation:</u>
There are many negative impacts of E-commerce although it is a easier way of buying and selling items. Some of the negative impacts of E-commerce includes privacy, security,price wars, returns of products and Complaints. It will be very easy to gather private information about any person who uses an E-commerce website.
Al though the payment process in E-commerce website is more easier and convenient there are also many risks associated with this. There wont be any knowledge of whether the proper authenticated user is making the payment. There are also many risk of taking the account related details when there is no adequate presence of security measures in the websites where online transactions are made.
Answer:
The journal entry is as follows:
Cash A/c Dr. $1,176
Sales returns and allowances A/c Dr. $600
Sales discounts A/c Dr. $24
To accounts receivable $1,800
(To record the receipt of the check)
Workings:
Sales discount = 2% of ($1,800 - $600)
= 0.02 × $1,200
= $24
