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
Talja [164]
2 years ago
9

A company estimates that warranty expense will be 2% of sales. The company's sales for the current period are $176,000. The curr

ent period's entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $3,520 credit Estimated Warranty Liability $3,520. Debit Estimated Warranty Liability $3,520 credit Cash $3,520. No entry is recorded until the items are returned for warranty repairs. Debit Warranty Expense $3,520 credit Sales $3,520.
Business
1 answer:
erastovalidia [21]2 years ago
8 0

Answer:

The answer is

Dr Warranty Expense $3,520

Cr Estimated Warranty Liability $3,520

Explanation:

Warranty expense is a contingent liability and it is defined as liabilities that may be incurred by a firm or business depending on the outcome of an uncertain future circumstance.

Current sales = $176,000

Warranty expense = $3,520(2% of $176,000).

The rule: Debit increases assets and expenses while credit reduces it.

Credit increases equity(stock), sales(revenue) and liabilities while debit reduces it.

Therefore the period entry is

Dr Warranty Expense $3,520

Cr Estimated Warranty Liability $3,520

You might be interested in
Item1 1 points eBookPrintReferences Check my work Check My Work button is now enabledItem 1Item 1 1 points Assume the perpetual
artcher [175]

Answer:

$11,510

Explanation:

Calculation for the gross margin amount from the four transactions

First is to find the Cost of goods sold

Cost of goods sold = ($13,900 - $3,400) × (100%-2%)

Cost of goods sold=$10,500*0.98

Cost of goods sold=$10,290

Last step is to find the gross margin amount using this formula

Gross margin amount=Sales revenue - Cost of goods sold

Let plug in the formula

Gross margin amount=$21,800-$10,290

Gross margin amount=$11,510

Therefore the gross margin amount from the four transactions will be $11,510

3 0
3 years ago
Xugooooooooooooooooooooooo
Vika [28.1K]

Answer:

hailllllllllllllllllllleyyyyyyyyyyyyyyyyyyyyyyyy

Explanation:

7 0
3 years ago
Your cousin is currently 10 years old. She will be going to college in 8 years. Your aunt and uncle would like to have $ 105 com
telo118 [61]

Answer:

$76,134.84

Explanation:

Data provided in the given question

Future value = $105,000

Fixed interest rate = 4.1%

Number of years = 8

The calculation of present value is given below:-

= Future value ÷ (1 + rate of return)^number of years

= $105,000 ÷ (1 + 4.1%)^8

= $105,000 ÷ 1.379132002

= $76,134.84

Therefore, we simply applied the present value formula.

6 0
3 years ago
Susan Mbaya is an employee of Mauzo Ltd. She has provided the following details pertaining to
tatuchka [14]

Answer:

I don't know the answer to that question sorry

8 0
2 years ago
One of the major purpose of a pre-trial hearing is to
Contact [7]

The purpose is to resolve some of the legal issues before the trial begins.

7 0
3 years ago
Read 2 more answers
Other questions:
  • During the year Waterway reported net sales of $951000. The company had accounts receivable of $75500 at the beginning of the ye
    5·1 answer
  • Each week ab album sells 4% fewer copies than it did the previous week. this week it sold 12400 copies. at this rate in how many
    15·1 answer
  • Ken makes a monthly income of $3000 after taxes. Every month, he spends 40% of his income on clothing. How much money does Ken s
    5·1 answer
  • In her first few weeks at the marketing division of Rolland Retails, Judith Cox realized that Joshua, Doug, and Carl were closer
    10·1 answer
  • What is one drawback of pure competition compared to monopolies?
    12·2 answers
  • Who wants to get to know me, my name is papi to the girls and to the boys is nothing because i am one and am not gay.
    7·2 answers
  • Who wants to watch lgbtq videos? for all my lgbtq ppl
    9·2 answers
  • Waterway Industries is planning to sell 800 buckets and produce 1080 buckets during March. Each bucket requires 200 grams of pla
    5·1 answer
  • Now, consider the situation in which Noah wants to earn a return of 7%, but the bond being considered for purchase offers a coup
    5·1 answer
  • If you decide to hunt for your next job while you are still employed, you should be careful to a. Only search for jobs in other
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!