1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mashcka [7]
3 years ago
15

Ecco Company sold $151,000 of kitchen appliances with six-month warranties during September. The cost to repair defects under th

e warranty is estimated at 9% of the sales price. On October 15, a customer required a $120 part replacement, plus $87 labor under the warranty.
Provide the journal entry (a) the estimated expense on September 30 and (b) the October 15 warranty work.
Business
1 answer:
erik [133]3 years ago
8 0

Answer:

The journal entries are shown below

Explanation:

The journal entries are as follows

a. Product warranty expense $13,590             ($151,000 × 9%)

        To Product warranty payable $13,590    

(Being the warranty estimated expense is recorded)

b. Product warranty payable   $207

                To Supplies  $120

                 To Wages payable $87

(Being the warranty work is recorded)

Only these two entries are passed

You might be interested in
Momentum Rollerblades has three product lines: D, E, and F. The following information is available:
Mila [183]

Answer:

Operating income will increase by $16,000. This is not given as one of the options.

Explanation:

The difference between the sales and variable expense gives the contribution margin. The contribution margin net the fixed cost gives the operating income or loss.

                                                     D                         E                    F

Sales revenue                            $90,000        $40,000        $30,000

Variable costs                            <u>($40,000)</u>      <u>($10,000)</u>       <u>($10,000)</u>

Contribution margin                   $50,000        $30,000        $20,000

Fixed costs                                 <u>($10,000) </u>       <u>($5,000)</u>       <u>($25,000) </u>

Operating income (loss)             $40,000         $25,000       ($5,000)

The total operating income is

= $40,000 + $25,000 + ($5,000)

= $60,000

Should the fixed costs of F be eliminated, the operating income/(loss) of F

= $21,000 - $5,000

= $16,000

This is the net increase in the total operating income.

7 0
3 years ago
C&amp;K Brewing Company is a microbrewery in western Canada. It produces Maiden’s Honor brand ale, a dark beer called Warrior’s
ehidna [41]

Answer:

The correct answer is letter "A": concurrent .

Explanation:

Concurrent control is adopted to regulate ongoing activities in an organization so that they can meet the company's standards. This type of control is chosen to ensure that the output will have the results expected. It implies measuring the quality of the processes at a certain point in time to determine to continue with them or not.

3 0
3 years ago
Two​ firms, A and B​, must each choose either a low price or a high price for their product. The payoff matrix shows the profit
ahrayia [7]

Answer: 1. A.Both firms will choose the low price.

2. B. Both firms would choose the high price.

Explanation:

1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.

This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.

If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.

2. If the firms could cooperate with each​ other, both firms would choose the high price.

The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.

If you need any clarification do comment. Cheers.

4 0
3 years ago
The owners of a local business are making a rational decision about how many workers to hire. How many workers would cause the m
Gekata [30.6K]
<h2>10 workers would cause the marginal  to exceed the marginal benefits.</h2>

Explanation:

  • Let us understand the term "Marginal benefits".
  • It is the additional amount that the consumer "willing to pay" for an additional goods or a service.
  • In terms of producers, the marginal benefit is termed as marginal revenue.
  • Here according to the situation given in the question as to how many workers to hire could be answered by the number 10.
  • Marginal revenue always falls below marginal cost.
  • It is the revenue that the organization receives for selling one additional unit.
8 0
3 years ago
Read 2 more answers
The costs incurred before opening a business​
True [87]

The expenditure incurred prior to the incorporation of an enterprise is to be considered as a pre-incorporation capital expenditure. The expenditure incurred prior to the 'setting-up of business' is to be considered as a pre-operative capital expenditure.

8 0
2 years ago
Other questions:
  • Which of the following did not result in economic growth? Many citizens emigrating from Zimbabwe when a politically repressive r
    7·1 answer
  • Take a look around your house and identify household products that work by means of an enzyme. name the products, and indicate h
    13·1 answer
  • A certain production process requires only two types of inputs — capital and labor. In 2006, 100 units of labor and 50 units of
    5·1 answer
  • Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond ha
    12·1 answer
  • A taxpayer, in the 25% bracket before considering the sale, sold for a gain of $10,000 a residential rental building, purchased
    6·1 answer
  • "Cincinnati Supply, Co. is a local supplier to the Kraft Heinz Company, which is the third-largest food and beverage company in
    15·1 answer
  • Leon, the production manager at a furniture manufacturing company, decides to underperform at work by not meeting his monthly ta
    15·1 answer
  • Using the Chipotle example we have discussed in class imagine that all employees are paid $15/hour, the grill costs $300, and ea
    7·1 answer
  • __________ is the manufacturing strategy that has the shortest / fastest lead time (i.e., the manufacturing strategy that will p
    7·1 answer
  • What do banks usually offer in order to encourage you to put money in a savings account?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!