The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900
Explanation:
- Entertainment Tonight, Inc. manufactures and sells stereo systems that include an assurance-type warranty for the first 90 days. Entertainment Tonight also offers an optional extended coverage plan under which it will repair or replace any defective part for 2 years beyond the expiration of the assurance-type warranty. The total transaction price for the sale of the stereo system and the extended warranty is $3,000. The standalone price of each is $2,300 and $900, respectively. The estimated cost of the assurance-warranty is $350. The accounting for warranty will include a credit to Unearned Warranty Revenue, $900.
- Unearned extended warranty revenue is given to be as an unearned revenues in accrued liabilities in the balance sheets.
- Revenue which comes from separately priced, self-insured service contracts is reffered at the point of sale.
- Unearned revenue is a money which is received from a customer for work that has not been performed still.
Answer:
Yes it does as the company expect to pay for the warranty but doesn't know as it may occur or don't dependion upon the notebook hardware and software performance over the 90-days period
Warranty expense 29,500 debit
Warranty Liability 29,500 credit
Explanation:
We will record a warrant liability for the 5% of the mount sold. As the warranty liability is generated at the time of sale which occur in December
<em>Profit</em><em> </em>is what is left after a firm plays its variable costs and fixed costs.
Answer:
Therefore, we can conclude that:
the marginal product of the third worker is 9.
Explanation:
a) Data and Calculations:
The productivity of first worker = 24
Increase in productivity from second worker = 18
Increase in productivity from third worker = 9
b) The marginal product or productivity of a worker shows the increase in productivity as a result of hiring an additional worker. To obtain the marginal product, we first calculate the change in output as a result of the change in the input of the particular resource. Then, this change in output is the marginal product.
Answer:
b) Managerial hubris
Explanation:
Based on the scenario being described within the question it can be said that the term that is often used to describe this would be Managerial hubris. This term refers to the unrealistic belief by managers that believe that they can manage a target firm's assets better than that firm's current management. Which is what is happening in this scenario since the managers at Winter Wonder believe that they can do a better job at managing the Sleds by Bob business better that their current managers.
